Building Your. Melaleuca Business. Simple Steps for Your Success

Transcription

1 Building Your Melaleuca Business Simple Steps for Your Success

2 Table of Contents Welcome to Melaleuca! For more than 29 years, Melaleuca s mission statement has been To enhance the lives of those we touch by helping people reach their goals ṢM Each month, in fulfillment of that mission, hundreds of thousands of Melaleuca Marketing Executives receive a commission check from Melaleuca. Many refer a few friends and earn a little each month to help pay for small expenses. Other Marketing Executives build a part-time Melaleuca business more intently, earning substantial residual income each month. These Marketing Executives often use this income to get out of debt, create more time freedom, and secure their retirement. All the information you need to begin building your Melaleuca business is included in this booklet. The coaching you ll get from the Marketing Executive who introduced you to Melaleuca can help you get off to a quick and successful start. All you have to bring is your time, effort, and willingness to learn. We look forward to working together as you begin your Melaleuca business! 4 Getting Started 6 What Makes Melaleuca Different? 8 The Lasting Power of True Residual Income 10 Introduction to the Seven Critical Business-Building Activities 10 Activity 1: Keep Building Your Contact List 14 Activity 2: Set Appointments 18 Activity 3: Make Presentations 22 Instructions for Proper Completion of Enrollment Forms 24 Activity 4: Hold Follow-Up Meetings within 48 Hours 28 Activity 5: Celebrate Success 31 Activity 6: Always Be Involved with Fast Track 34 Activity 7: Lead by Example 38 Achieving Financial Freedom 39 The Melaleuca Compensation Plan 40 What Are the Ways to Earn Compensation with Melaleuca? 41 How Much Can You Earn As You Get Started? 42 The Pacesetter Program 43 Compensation Summary 49 Leadership Pools 52 Annual Income Statistics 54 Celebration 55 Online Enrollment Center 56 Frequently Asked Questions 58 Statement of Policies 64 Definitions of Terms 66 Melaleuca Guidelines on Internet Usage 2 Building Your Melaleuca Business 3

3 Getting Started Once you ve enrolled and teamed up with your enroller, what s the next step? Your Getting-Started Checklist Once you ve enrolled with Melaleuca, your enroller will arrange for a followup meeting within 48-hours. Complete the tasks on the checklist before this meeting, so you will be prepared and ready to move your Melaleuca business forward. Each step is explained in more detail in this booklet. Before your follow-up meeting, be sure to complete the following homework: c c c c c c Set up your online shopping account. When you are enrolled as a Melaleuca customer, you were sent an invitation to the address you provided. This message contains instructions on how to easily set up your account password. Identify products to shop for in your next order. As you review the Melaleuca Country catalog, identify the products you would like to order. Write down your questions. Write down any questions you have about your Melaleuca business or Melaleuca products to discuss with your enroller. Determine your why. Success is often determined by knowing what you want from Melaleuca and how much you want it. Think about the one thing that s really motivating you to succeed, and write it down. Then don t let anything else get in your way. Determine your business hours. Write down the days and times you will devote to your Melaleuca business. How many hours are you willing to invest each week? Start your contact list. Write down 100 names without prejudging how interested they may be to get your contact list started. Team up with your enroller and schedule your first appointments where your enroller will do Delivering Wellness presentations with you to help you get started. Important: You may be very enthusiastic about getting started with your Melaleuca business, but please team up with your enroller and follow these important steps before you begin contacting customers. Your enroller can help you get started the right way. Other Important Activities: c c c Place your first order. If you haven t shopped for your first order, open up your Melaleuca Country catalog and write down the products you d like to try. Your enroller will help you shop during your follow-up meeting. If he or she is unavailable, you can call Melaleuca at at (Malaysia)/ (Singapore) or log onto Malaysia. Melaleuca.com / Sg.Melaleuca.com and place your order today. Order a Value Pack or Essentials and begin converting your home to Melaleuca products. Ordering a Essentials Pack is an important decision as you start your business. It gives you exposure to Melaleuca products at a substantial discount of 30% from the already discounted Preferred Customer price. It provides you with the most efficient way to experience the majority of Melaleuca products right away, it qualifies you for Pacesetter Bonuses, and it takes only a few enrollments to pay for itself. Review the product information available online at Malaysia.Melaleuca.com / Sg.Melaleuca.com. Take some time to become familiar with Melaleuca s products, like the Vitality Pack. This online tool will be a useful ongoing resource. c c Thoroughly review Building Your Melaleuca Business (this book). Refer 8 or more Preferred Customers. Start referring customers from your contact list. Once you reach 8 personally enrolled customers, you become a Director and become eligible for additional bonuses. 4 Building Your Melaleuca Business 5

4 What Makes Melaleuca Different? Melaleuca manufactures quality products, sells them at reasonable prices, and gives customers the opportunity to share in the revenues. Melaleuca is not Multi-level Marketing Melaleuca manufactures quality products, sells them at reasonable prices, and gives customers the opportunity to share in the revenues. MELALEUCA MULTILEVEL COMPANIES Consumer Direct Marketing Melaleuca s Consumer Direct Marketing redirects funds that would typically be used for advertising, multiple shipping costs, middlemen, and distribution channels into spending for higher quality ingredients, product innovations, and revenue sharing with customers. CONSUMER DIRECT MARKETING MELALEUCA S PARTNERSHIP MODEL DIRECT TO THE CUSTOMER Melaleuca Manufactures and Ships Direct Customer WORD OF MOUTH REFERRALS HIGHER QUALITY PRODUCTS The Result? SAVINGS AND BETTER VALUE REVENUE SHARING Simply switch stores and buy only what you need each month; no risk 1 Require large inventory purchases to earn a bonus Distributors purchase and resell products to Customers shop directly with Melaleuca; there are customers and move products from one level to no distributors at Melaleuca. There are no levels of 2 the next. That s why they are called Multi-Level distribution at Melaleuca. Marketing companies. Exceptional products at reasonable prices 3 Prices are often 3 4 times the actual products value Real products you really use; simply redirect a Rely on the sensational, such as exotic juice, magnets, portion of what you re already spending at the store 4 and other products to Melaleuca Products developed by world-class scientists 5 Often use unfounded gurus or celebrities to hype their products Everyone can succeed anytime 6 First in wins; last in loses A 27 year proven track record of consistent growth 7 Companies come and go High customer retention and repeat purchases 8 Low customer retention and repeat purchases Anyone can build a Melaleuca business with time and effort 9 Rely on prior MLM experience to succeed A mission of helping others 10 Focus almost exclusively on money TRADITIONAL BUSINESS MODEL With Melaleuca: Melaleuca: NO large investment ADVERTISERS Television Radio Print Media MANUFACTURERS Proctor & Gamble Colgate-Palmolive Johnson & Johnson RETAIL DISTRIBUTION WalMart Safeway Kroger Each entity takes a portion of the revenues The customer is outside of the partnership Customer Is a financially sound company with a long track record of success Produces unique products that people use month after month Has loyal customers with a high month-to-month reorder rate (approximately 95%) Provides wellness products that are proven to be more economical than brands found at the grocery store Offers an opportunity where anyone can build a successful business Is concerned about its customers, their homes, and the environment. Melaleuca produces products and services that promote total wellness for life NO carrying inventory NO taking orders and making deliveries NO billing and collections NO pressuring customers to purchase NO repeat sales presentations NO risk simply switch stores and save 6 Building Your Melaleuca Business 7

5 The Lasting Power of True Residual Income Preferred Customer Program Melaleuca Preferred Customers enjoy a significant discount on Melaleuca products, outstanding services, and more. There s no other customer benefit program like it in the world! And all of these Preferred Customer benefits come in exchange for our customers agreeing to shop with us on a monthly basis. Customers are rewarded for their monthly loyalty, and their monthly loyalty creates true residual income for you. What is residual income? Residual income is reliable income that comes in month after month, year after year with nominal ongoing effort from you. Once you have introduced a customer to Melaleuca and helped them set up their account, Melaleuca goes to work for you. Melaleuca provides world-class products, catalogs, and an online shopping website; takes your customers orders; ships all product orders; and collects sales tax, all at no cost to you. You ll have periodic followup discussions with your customer, but you don t need to go back to that customer again and again to make repeat sales presentations. Your residual income continues as that customer shops month after month. Why does Melaleuca have reliable residual income? There are several key reasons. High Reorder Rate Exceptional Business Model Loyalty Shopping Dollars Leadership Points Consumable Products Residual Income Preferred Customer Program Over 350 Products To Choose From Reasonable Prices Unique Products People Want Consumable Products Imagine if Melaleuca sold jewelry instead of consumable goods. When you introduced a customer to Melaleuca, they would buy jewelry and not shop again for several months. The commissions wouldn t be ongoing because few people buy jewelry month after month. Melaleuca sells consumable products, like shampoo, tooth polish, and laundry detergent, that customers use every month. As a result, your income from their ongoing purchases is residual. Reasonable Prices Your customers find value at Melaleuca. That brings them back month after month especially in a tough economy. Whether they shop for Affinia shampoo or MelaPower laundry detergent, they can simply switch stores and save when they shop. Unique Products People Want Many of Melaleuca s products are first-in-the-world discoveries and can t be found anywhere else. The Access Bar, Vitality Pack powered by Oligo, and numerous other products were developed by Melaleuca and our scientific partners. Because your customers can t find these products anywhere else, they shop at Melaleuca month after month instead of the grocery store. If Melaleuca sold a commodity such as electricity, your customers could go to any other company and get the exact same product. That s why it takes unique products to create ongoing residual income. More than 350 Products to Choose From Because consumers have a large variety of products to choose from at Melaleuca, they can shop this month for products they may not have purchased last month. Your customer may not need laundry detergent this month. That s okay. They can shop for shampoo, mascara, sunscreen, or a host of other products. Melaleuca is a true consumer products company competing for market share against grocery store brands and winning. As a result, your customers come back to Melaleuca and shop again and again. For perspective, if a customer bought only 35 Product Points a month, it would take them over three years to buy every product in Melaleuca s product line. Loyalty Shopping Dollars Loyalty Shopping Dollars are part of Melaleuca s exclusive Lifetime VIP program. For more information on how you can start earning your Loyalty Shopping Dollars, please call (Malaysia)/ (Singapore) and ask any of our friendly Customer Service Associates. High Reorder Rate It s well documented that 95 percent of customers who shop with us this month will shop again next month. Melaleuca s high reorder rate drives true residual income. That means as you build a Melaleuca business, your customers will shop month after month. Exceptional Business Model Melaleuca is the only Consumer Direct Marketing company on the planet. Melaleuca is not multilevel marketing. Consumer Direct Marketing was designed to create and reward customer loyalty. Marketing Executives introduce customers to Melaleuca and help them set up their account. Then customers shop direct from Melaleuca s website or catalog. There s no inventory to handle, no big investment, and no repeat sales presentations. Anybody can build a successful Melaleuca business. Why does that create residual income? Since anyone can do it, your business can be full of everyday average customers who refer a customer from time to time. That provides the ongoing spark to your residual income. Leadership Points Many parts of Melaleuca s revenue-sharing plan reward monthly loyalty and create residual income. However, Leadership Points provide the anchor to a stable, ongoing business. Leadership Points reward the leaders in your business for staying engaged and regularly providing the spark necessary to keep your business flywheel spinning. When they refer customers, develop Directors, or help others do the same, they earn Leadership Points. Therefore, your business remains thriving and healthy. Value of each Personally Enrolled Customer Recently the income Marketing Executives earned over time for each customer they personally referred was calculated. It was calculated using a group of business builders who have been with Melaleuca at least four but not more than seven years. Please note that Melaleuca has tens of thousands of Marketing Executives who have been earning residual income for more than seven years. To be conservative, only those who have been with Melaleuca for four to seven years were included in the calculation. To calculate the income earned per personally enrolled customer, the total earnings of each business were divided by the total number of customers they have ever enrolled. That includes the customers who currently shop and the customers who have stopped shopping. Here is the average per personally enrolled customer of our group of Marketing Executives: Directors Directors V Senior Directors Senior Directors V Executive Directors Executive Directors V Corporate Directors S$ / RM S$ / RM1, S$ / RM1, S$ / RM2, S$3, / RM7, S$7, / RM14, S$40, / RM81, That means every time these Directors referred a new customer, on average, they earned over S$450/RM900 (including customers who have since stopped shopping each month). The Executive Directors, on average, earn more than S$3,600 / RM7,200 per customer. That s amazing! What is your number? You can calculate your number by taking your total earnings to date as shown on your last business report and dividing it by the total number of customers you have ever referred to Melaleuca. Do your calculation. If you re new with Melaleuca, your number will start smaller. If you ve been with Melaleuca for many years, your number will likely be larger. As you talk about Melaleuca with your friends and acquaintances, be sure to share why Melaleuca has residual income. In today s economy, residual income may seem like a lost concept. But not at Melaleuca. In fact, it s thriving here. Melaleuca is the place for true residual income. * Results vary. For typical results, please consult the Annual Income Statistics on page Building Your Melaleuca Business 9

6 Introduction to the Seven Critical Business-Building Activities Building a successful Melaleuca business, like anything worthwhile, requires working hard at the right activities. The Seven Critical Business-Building Activities provide a proven road map for success with your Melaleuca Business. Commit today to yourself and to someone who will hold you accountable to do these activities and to teach them throughout your organization. Part of the foundation of your business is your contact list. If you are going to treat this like a hobby, you ll come up with a few names, maybe eight, but that s it. But if this is going to be a business that will last, you are going to write down anyone you have ever known. Your first contact list may be 100 or more names. Alan Pariser Corporate Director VII, Nevada, USA ACTIVITY 1: KEEP BUILDING YOUR CONTACT LIST Add one new name to your contact list every day Your contact list is the first step toward building a successful Melaleuca business. You should add to it daily and always keep it with you! The Lifeblood of Your Business The health of your business is directly connected to the health of your contact list. If you have an incomplete contact list, your business will be the same. If you have a healthy, strong, and vibrant contact list, you have a solid foundation upon which to build your Melaleuca business every day. A contact list is simply a list of names of people whom you intend to contact friends, family, acquaintances, colleagues, teachers, neighbors, and others in the community. As you build your contact list, you should put the name of everyone you know on it everyone. Don t prejudge anyone thinking they would never be interested in hearing about Melaleuca. Many times the people you think would be least interested are very excited to hear about better, safer products for their families and an opportunity to earn additional income. Successful Marketing Executives never prejudge; they give everyone the very best presentation they can and then let people decide for themselves. Be thorough; write down the names of everyone you know. Think of the names of people you invited to your wedding, those on your Christmas card list, or those you stay in touch with now and then. This will help you think of people you might not otherwise remember. Use the suggestions on page 13 to think of people in your hometown or others you have associated with. Because you are meeting people every day, you should be adding names to your contact list every day. The mother standing in line at the bank, the cable repairman, a child s teacher or gymnastics instructor, the person waiting with you at the doctor s office or jogging next to you at the athletic club these are all people you would meet even if you didn t have a life-changing opportunity for them. How much more meaningful will your relationship be if you help them achieve better financial, physical, and personal wellness! Expanding Your Horizons Step Out of Your Comfort Zone The best way to meet new people is to spend time in situations where you can meet, greet, and get to know others. This can be a book club, a quilting group, a yoga class, or a parents association. Or it can be an aerobics class, a golf club, a professional association, or a community organization. Your options are unlimited. Become a Volunteer Get Involved One way to grow your contact list and benefit your community at the same time is to become a volunteer. Volunteering allows you to not only serve, but also to meet a lot of people who are highly interested in helping others reach their goals making them a perfect fit with Melaleuca! There are so many ways to actively meet people every day. In organizations, clubs, and associations, you already know something you have in common with everyone else involved. We ve mentioned just a few examples here. There are countless others. Find one (or more) that interests you and get involved. Build a Relationship of Trust As you attend networking events and meet new people, be sure to make the conversation about them, get to know them, find out everything you can about them. Take the time to develop a relationship. This may take weeks or even months, and that s okay. Remember, you re trying to help them, and unless they know you really care about them they aren t likely to listen to you. Be sure to look for contacts that could be great business partners. Consider, for a moment, the attributes of your ideal business partner hard worker, self-starter, selfmotivator, likeable, trainable, cooperative, interested in others, etc. When you encounter new prospective customers and business builders, determine whether they have these attributes and others you re looking for in a business partner. Also, look for those who need the business who are out of work, caring for old or sick family members, struggling to meet their monthly bills, or looking for a flexible way to earn additional income. Mark those names with stars in your contact list and think about how to best approach them. Remember that you can find potential business builders anywhere. Often, you ll find that those who initially seem to be your best customers can become your best business builders as they realize the value of the products, become excited, and begin communicating that value to others. People with good leadership and people skills can become great assets to your Melaleuca business. Be passionate about your contact list. Create it, add names to it on a daily basis, and keep it with you always. A complete, current, and active contact list is central to the success of your business. Frank L. VanderSloot Melaleuca CEO 10 Building Your Melaleuca Business 11

7 Your Initial Contact List Use the following page to write down names and start building your initial contact list. Then look up their phone numbers and keep them handy to help you make appointments for future presentations. Contact Suggestion List and Categories There are more people in your circle of influence than you might think. Use the following list to jog your memory for more possible contacts. Name Phone Date Contacted Notes Date to Follow Up Family, Friends, & Neighbors 1. Parents, siblings, etc. 2. Friends 3. Cousins, uncles, aunts 4. Neighbors 5. Acquaintances 6. Fellow carpoolers 7. Child s friends parents 8. Friend s parents 9. Spouse s best friend 10. Babysitter 11. In-laws 12. High school friends 13. College roommates School/ Extracurricular Activities 14. Teachers 15. Principal 16. Guidance counselors 17. Karate instructors 18. Coaches 19. Music teachers 20. Scoutmasters 21. Dance teachers 22. Librarians 23. Tutors Shopping/Stores 24. Grocery 25. Convenience 26. Department 27. Hardware 28. Auto supply 29. Electronics 30. Tires 31. Office supplies 32. Movie rental 33. Health food shop owner or employees 34. Discount store workers Workers 35. Truck drivers 36. Cab drivers 37. Bus drivers 38. Bakers 39. Car salespeople 40. Hostesses/hosts 41. Servers 42. Chefs 43. Cashiers 44. Dishwashers 45. Office supply salespeople 46. Department store salespeople 47. Appliance repairmen 48. Small business owners 49. Flight attendants 50. Travel agents 51. Locksmiths 52. Painters 53. Roofers 54. Insulators 55. Landscapers 56. Wallpaper installers 57. Inspectors 58. Carpet layers 59. Electricians 60. Contractors 61. Carpenters 62. Upholsterers 63. Cabinet makers 64. Plumbers Professional 65. Work colleagues 66. Administrative assistants 67. Union members 68. Engineers 69. Realtors 70. Lawyers 71. Professors 72. Architects 73. Veterinarians 74. Writers 75. Publishers 76. Social workers 77. Printers 78. Surveyors 79. Bank tellers 80. Accountants Medical/Health 81. Nurse 82. Dentist 83. Doctor 84. Chiropractor 85. Pharmacist 86. Therapist 87. Health spa owner 88. Optician 89. Ambulance driver 90. Orthodontist Sports/Clubs 91. Kiwanis club 92. Lions club 93. Rotarians 94. Bowling team 95. Tennis partners 96. Golf partners 97. Swim teammates 98. Jogging partners 99. Scrapbooking friends 100. Cycling group members 101. Weight lifting partners 102. Fitness instructors Community 103. Police officers 104. Highway patrol 105. Chamber of commerce 106. Firefighters 107. Volunteers 108. Military recruiters 109. Alumni association workers Services 110. Caterers 111. Couriers 112. Barbers 113. Hairstylist 114. Postal workers 115. Repairmen 116. Cable TV installers 117. Auto mechanics 118. Auto body repairmen 119. Photographers 120. Satellite TV installers 121. Salespeople 122. Parking attendants 123. Gas station attendants 124. Dry cleaners 125. Flower shop employees Take Your List with You Everywhere Once you have created your initial contact list, you have started a productive habit. It s crucial that you continue this habit as you continue to build your Melaleuca business. Keep your contact list with you at all times. You never know when you might meet someone to add to the list. Add at least one new name to your contact list every day. Get a business card from a bank teller when you make your deposit. Ask for the name of the person who calls you from a telemarketing service. Start up a conversation with the lady next to you in line at the grocery store. Meeting new people is a daily event for everyone. The smart business builder realizes that many of these people can lead to a growing business. Carrying your list with you helps you take advantage of every moment in the day. If you have minutes on your lunch break, pick up your list and make some calls on your mobile phone. Follow up on prior conversations, get to know more about the person for future reference, or even set an appointment to talk about Melaleuca. Perhaps you arrive at a meeting 15 minutes early. Use the time to follow up on that contact you made the day before. Are you waiting for a child to finish a music lesson? Review your contact list and do the necessary follow-up. 12 Building Your Melaleuca Business 13

8 ACTIVITY 2: SET APPOINTMENTS Make One Approach for an Appointment Every Day For some business builders, inviting someone to attend a Delivering Wellness presentation can be the hardest part of the process. Sometimes, the phone can feel like 500 pounds and becomes difficult to lift when we know it will involve making an approach. Nonetheless, any successful business builder can tell you that stepping out of your comfort zone will pay big dividends for your Melaleuca business in the long run. To help you make approaches more confidently, here are a few thoughts about setting appointments: Make It Natural Do you remember the last time you recommended a restaurant to someone? How did that conversation go? Were you pushy or overeager? Or were you straightforward and sincere? Chances are, someone said something natural like, I m in the mood for Chinese food, and you chimed in with, I know a great place over on Seventh Street; you ought to go tonight and check it out. Sharing Melaleuca doesn t have to be any different than sharing your favorite restaurant or sharing your favorite book: You would love these products why don t you come over and take a look? The simple key to making a good approach is this: think about how Melaleuca will make a difference for the person you re talking to. If you approach potential customers thinking about how their enrollment will benefit you, you re bound to miss the mark. Instead, approach customers with the intention of helping them. With Melaleuca s vast product line and rewarding financial opportunity, it s simply a matter of matching Melaleuca with your prospective customer s needs. When your approach is tailored to their needs, it s natural and successful. Make Time Participate in a weekly Power Hour as often as possible. Power Hour is when teams organize themselves into groups, perhaps as 2 or 3, sometimes as large as 20 or more and make calls and set appointments (see page 16 for a complete explanation).it s crucial to have specific times for when you will set appointments. If you wait until you have time to make calls, a week can turn into a month, and one month into two, and then the opportunity has passed. Set time aside every week. Try, for example, Sunday nights and Tuesday mornings. Calendar, plan, stick to your plan, and be consistent. Create Urgency You want your call to last only a few minutes. Any longer and you may get drawn into making the presentation on the phone. Melaleuca is best presented in person, where the potential customer can see an entire Delivering Wellness presentation and the products you may want to share with them. Failing to keep your call brief leads you into the trap of trying to immediately explain Melaleuca. That s like trying to describe a song without music. It s important to create a sense of urgency, make the appointment, and end the conversation. How do you create urgency? By simply letting them know you don t have much time, but you would love to explain Melaleuca in person. Approaches At this point you can insert whatever approach works best for you and the person with whom you re speaking. There are many approaches you can use here are just a few: Safer Products Are they looking for better, safer products? Business Builder Are they interested in creating true residual income? Time Freedom Are they looking to spend more time on what matters most? Financial Freedom Are they looking for a way to get out of debt or save for retirement? Healthier Lifestyle Do they want to improve their overall wellness? Confirm The final part of the conversation is to confirm the appointment. Give the person a choice. I m free for lunch tomorrow, or we could get together Thursday or Friday morning for coffee. Which works best for you? Once you have the appointment, thank the person, tell them you re looking forward to it, and confirm the date and time. Make sure you mark it down on your calendar. Congratulations! You ve just succeeded in setting an appointment! Pat yourself on the back, pick up the phone, and do it again. Be Positively persistent Some of your approaches will go smoothly, but often you ll experience a little resistance from your contact. This is not the time to give up or back down! Experienced business builders know how to turn a no or maybe into a yes. It s all a matter of how you handle it. Be honest do not say anything that is misleading or untrue. Stay Cheerful and Positive Stay open to the person. Put yourself in their place. How would you feel? Most likely you can identify with what they may be thinking. Remain cheerful. Keep your voice up and positive. And move to the next step. Put Them at Ease Once you ve identified with your contact, help her feel more comfortable. The best way to do this is through your tone of voice and the words you use. Stay casual and comfortable as if you re having a regular chat with one of your friends. Your goal is to help this person. If you truly believe that, it will come across in your conversation. Identify with the Person The best way to establish trust is to let the person know that you can identify with their feelings or thoughts. If they feel understood, they are more likely to be open to what you have to offer. You can use the words I feel the same way or I understand. Make It Convenient Finally, help counter resistance by making it convenient. Try to fit into their schedule. Is there a coffee shop near their place of work? Maybe they could meet you on a short break. Be creative. People are busy, but you can make the appointment a welcome break from their regular routines. Find the easiest way to present the opportunity without inconveniencing your contact. Be Ready Sometimes you can encounter resistance immediately. Suppose, for example, you re talking with someone and they ask What is it? Now you have to be careful not to get into the question/answer spiral. Try this: It s Melaleuca. Have you heard of it yet? If they answer no, say, That s what I want to show you. Here s when I have some time. What works best for you? If they have heard of Melaleuca, say, Great. I thought you might have run across it before. Let s get together so I can show you what it s all about. Practice with your enroller, your friends, and others in your organization. The more you do it, the better you ll get. And if you still can t get the yes you want, ask for referrals. At a minimum, most calls can end in a quality referral. SAMPLE APPROACHES Here are a few sample approaches to help you get started setting appointments. The Specific Product Approach Tell the person about a particular product that could benefit them. I know you ve had a lot of trouble with arthritis. I ve just come across a new, all-natural product called Replenex that really helps arthritis. It s part of an incredible product line that can improve your health and save you money. Can I show it to you? The Time Freedom Approach Appeal to the person s desire for more flexibility with their time. You know, I ve seen how many hours you work a week and I know you ve talked about having a more flexible lifestyle. I m working from home, setting my own hours, and building a business that produces remarkable products, creating residual income. I need a business partner to team up with. Financial Freedom Approach Appeal to your customer s desire to get out of debt. I know how it feels to be under a mountain of bills and debt. I was lucky enough to be able to pay off much of my debt thanks to my Melaleuca business. I can t tell you how much better I feel to not have to worry about credit card bills. I think it would be a great opportunity for you to do the same. When can I tell you about it? The purpose of any approach, whether in person or over the phone, is to get an appointment to make a Delivering Wellness presentation and that s all! Melaleuca cannot be explained in five minutes or on the run. It s important to create curiosity and yet learn how to steer the conversation in one direction only to confirm the appointment. Mark Atha, Corporate Director III, Arizona, USA 14 Building Your Melaleuca Business 15

9 Power Hour There is no better way to set appointments than participating in a Power Hour! Doing the difficult things in life is always easier when done with the support of someone else. That s why at Melaleuca teams organize themselves into groups, perhaps as small as two or three, sometimes as large as 20 or more and hold what we call a Power Hour. The agenda is simple: You get together at someone s home (or it can be done on a conference line), everyone has a telephone, their contact list, and a calendar showing scheduled Delivering Wellness presentations. The first few minutes are spent on doing some training on appointment setting and discussing the best approaches to use for those you will be contacting that night. Then everyone begins making calls for 30 minutes, setting appointments with as many contacts as possible. Some folks won t answer, others will say no, but many will say yes. Everyone participating in the Power Hour is cheering each other on and having fun as the excitement and energy builds. Then, at the end of the 30 minutes, the group celebrates each other s success, gives coaching on how to handle objections they have received, schedules the next Power Hour, and returns to their homes. Power Hour really is powerful, accomplishing in just one hour what may take a person weeks to do on their own. In addition to Power Hour, you should make it a goal to make one approach for an appointment every day, even if you end up leaving a message and not finding them home, it is important to make this an important part of your daily routine. Growing Your Business with Power Hour Melaleuca holds Singapore and Malaysia Power Hours. However, you can do a Power Hour any time. Whether your meetings are in person or over the phone, organize your team and commit to doing Power Hour meetings together. In-Person Power Hour Agenda 5 mins. Welcome and review agenda and purpose of Power Hour 5 Share success stories: have someone share success from the prior Power Hour meeting 5 10 Conduct training on how to build your contact list and set appointments 10 Prepare team for making calls Verify everyone has an Accountability Sheet Make sure everyone has their cell phone Write everyone s name on the whiteboard located at the front of the room start making calls! 30 Make calls Have someone available to answer questions and write on the whiteboard the number of appointments set Mark the board every time an appointment is set (suggestion: to create some fun and celebrate, ring a bell for every appointment) Remind everyone to use their Accountability Sheet to track results 10 Conclude meeting Celebrate success: calls made and appointments set Review the next steps: have the team send their Accountability Sheet Remind them of the next Power Hour meeting Over-the-Phone Power Hour Agenda 5 mins. Welcome and review agenda and purpose of Power Hour 5 Share success stories: have someone share success from the prior Power Hour meeting 5 10 Conduct training on how to build your contact list and set appointments 10 Prepare team for making calls Verify everyone has an Accountability Sheet Make sure everyone has their cell phone and is logged onto the chat room Remind the team to call into the conference number in 30 minutes after setting appointments start making calls! 30 Make calls Have someone available on the chat room to answer questions and keep track of appointments set Encourage the team and celebrate success when appointments are set (e.g. Way to go Beth, you ve set another appointment! ) Remind everyone to use their Accountability Sheet to track results At the end of 30 mins, call into conference call to review results 10 Conclude meeting Celebrate success: how many calls made and appointments set Review the next steps: have the team send their Accountability Sheet Remind them of the next Power Hour meeting Celebrate Success: Following your Power Hour, send a follow-up to your team. Ask them to report their results from their Accountability Sheet. After two weeks, they should report presentations made and enrollments completed. 16 Building Your Melaleuca Business 17

10 ACTIVITY 3: MAKE PRESENTATIONS Successful Melaleuca business builders use the Delivering Wellness presentation every time they do a presentation because it s highly effective and can be easily duplicated. You should use the printed Delivering Wellness presentation every time you present. Remember, what you do duplicates. If you use only a portion of the presentation or your own version of the presentation, your team will not be able to duplicate it. Therefore, do what you would like your new Marketing Executives to do. This is an important and powerful principle. The most successful Melaleuca organizations always give the same Delivering Wellness presentation the same way every time. Why? Because others will follow your example. When & Where You Meet for a Presentation You would typically meet at your home, the customer s home, or some neutral location like a coffee shop, park, or other quiet place that will allow you to talk. If you re doing an in-home, pick a date and time that you feel will be the most convenient. Know Your Audience As you begin your presentation, try to learn as much as you can about your audience. Ask questions about the following topics: Have they ever tried a home-based business before? What do they do for a living? Do they like their current job? Are they satisfied with their income level? Are they married? Do they have children? What do they do for fun? Would S$750 / RM1,500 per month help them in a significant way? Does more time with their family mean anything to them? Are they concerned about their finances? Use the answers you get from these questions to show each new customer how a Melaleuca business can help them get what they really want in life. Confirm Attendance The day before the Delivering Wellness presentation, call those you have invited to confirm the time and location. You re actually confirming their attendance, so call to confirm, not question, attendance. This way, they will not be likely to change their minds. Take Your Best Self to Your Delivering Wellness Presentation You don t have to be a great presenter. Share your experience; that will have the most impact on the quality of your presentation. Attendees will find your presentation credible if you bring confidence and a down-to-earth feeling to the in-home. Share the Complete Delivering Wellness Presentation Regardless of whether you anticipate that your customer will become a business builder, share the business part of Delivering Wellness in every presentation. Often, the only reason some individuals don t build a Melaleuca business is because they don t know the opportunity exists. Just as the business is important to share, every other element of the Delivering Wellness presentation serves a purpose for your prospective customers. Prepare the Presentation Setting Your preparation can make the greatest difference. The idea behind your room setup should be to eliminate distractions. Turn off the television and place the refreshments in a separate room. Try to have guests sit on hardback chairs instead of couches so they ll avoid getting drowsy during your presentation. Orient your room toward the presenter the same way most people s living rooms are oriented toward the television: face chairs toward the front. How To Share Your Product Experience When telling others about your favorite Melaleuca product, organize your story into the following three points: 1. Use the brand name of the product Be sure you know the correct name of the product and refer to it the same way every time. For example, say The Gold Bar rather than the bar soap. 2. Your experience Provide a sincere story of your experience with the product and Melaleuca. 3. Why it works Review the information available online at Malaysia.Melaleuca.com / Sg.Melaleuca.com and the information found in the Melaleuca Country catalog. The Delivering Wellness presentation was designed by Marketing Executives with many years of experience. There is no need to reinvent the wheel. Do a complete Delivering Wellness presentation every time and you will duplicate success in your organization. Ed Bestoso Corporate Director VI, Florida, USA The Start of Your Delivering Wellness Presentation SUGGESTIONS FOR USING PRODUCTS IN YOUR PRESENTATION Mix up some Sustain Sport, or Attain for drinks. Lay out some Access, FiberWise, or Attain, Bars for snacks. Start with your story and share specific things like: When you were introduced to Melaleuca What your life was like before Melaleuca What Melaleuca products most interested you when you first became a Preferred Customer Why you re building a Melaleuca business What the results have been You may want to ask for product experiences from other Marketing Executives in attendance Share what you ll cover during the Delivering Wellness presentation (use page 1 of the Delivering Wellness booklet) Closing Your Presentation Share your own experience in building a business. Then present page 29: How Can Melaleuca Enhance Your Life? This is the three-category close. Explain the three categories of participation. You might phrase your question like this: These three categories describe how Melaleuca can enhance your life. Which of these categories best fits you? As you read aloud and present this page, slow down a bit and ask those in attendance to really think about how an extra S$750 / RM1,500, S$1,500 / RM3,000 or even S$15,000 / RM30,000 could improve their life. Pause for a moment. This is the page when they can consider the possibilities of their life being different. Give a trial-size Renew to potential customers. The last pages in the presentation are for reference only. You can refer to them if your customer is interested in building a Melaleuca business. Explain the importance of getting started the right way. DWP page will help you show the steps to getting started and is a transition to help those in attendance complete their Agreement forms and place their first order. The Essentials/Value Pack page is available to show to those who are interested in purchasing the packs and saving additional money. For those who select Category 2 or 3, please explain that to qualify for Pacesetter bonuses, the enrollee needs to purchase a Essentials or Value Pack. The Income Statistics are provided for your enrollee s reference (please refer to DWP page). 18 Building Your Melaleuca Business 19

11 CLOSE AND COMMITMENT Other key Delivering Wellness presentation tips No matter how well you present Delivering Wellness, it will all be for nothing if you fail to enroll a customer. Following are several suggestions for completing a Delivering Wellness presentation in such a way that your guests will feel comfortable and excited to become Melaleuca customers. Start on Time and Set a Professional Tone Introduce Hosts If Needed If you have team members present, introduce them. I m excited to introduce my good friend and business partner Gain Commitment by Asking the Customer to Choose a Category As you come to the close of the Delivering Wellness presentation, introduce and explain the three categories of participation and ask your attendees which category they fit into Preferred Customer, part-time business builder, or fulltime business builder. Share Your Experience Share your Melaleuca experience and touch on your goals with Melaleuca. Just tell the story don t exaggerate. Talk to everyone as if you are good friends with them. Follow Up Set appointments for your follow-up meetings within 48 hours. Ask them to review the materials in the Membership Kit and to make a list of questions to discuss at your next meeting. Make sure you have your schedule so you can set dates and times. Give category 2 and 3 customers their homework assignments to do before the day of your follow-up. Have 8 10 Membership Kits on hand to give to new enrollees. Complete the Agreement Forms Filling out forms can seem overwhelming at first to your new customers. That s why it s very important that you help them through it. Be sure to complete each section and double check spelling for accuracy. Backup Order Explain that the Backup Order helps to secure their Preferred Customer status, qualifies them for a 30 40% discount, and ensures that their commission check arrives every month. Melaleuca allows you to preselect products that you like. In the event you forget to shop one month, this Backup Order will kick in to ensure you continue to enjoy the benefits of being a Preferred Customer. It s recommended that you help the new customer set up a custom Select Pack. Schedule Follow-Up As you finish enrollments, have your calendar ready so you can schedule follow-up meetings for each new customer within the next 48 hours. Let each person know that you are going to be there to help, whether he or she is interested in the business opportunity or just wants to enjoy the products. Give Homework Assignments Give your new customers a take-home package (the Membership Kit) to review. Have them read Your Preferred Customer Benefits and Building Your Melaleuca Business booklets, and begin their contact lists. Have them register for an online web account, view selected business and product trainings. Help the Customer Start Shopping Using the Melaleuca Country catalog or product price list, go through and help your new customer pick out the first products they would like to try. At this point it s best to get on the phone, call Melaleuca at (Malaysia)/ (Singapore), and help your customer start shopping right away. You can show them how easy it is, and speed up the process of their product experience. 20 Building Your Melaleuca Business 21

12 Presentation Setup and Materials Image is for illustration purpose only. Item configurations may be different for different countries Several copies of the most current Melaleuca Country catalog and Leadership in Action magazine Membership Kits to sell to new Marketing Executives Sample products bring along a few to share with your prospect during one-on-ones and group presentations, and set up several throughout your home during in-homes A current copy of your one-page business report summary A Essentials or Value Pack (particularly for in-homes) displayed on a table where prospects can review it; make sure the product setup is attractive and professional-looking Clipboards, paper, and pens Several chairs placed in a semicircle (if five or fewer attend, you can sit around the kitchen or dining room table) Your calendar or day planner Independent Marketing Executive Agreement Check off the appropriate participation category on the Marketing Executive Agreement and ask, Where would you like your business report to be sent? Completing the Customer Membership Agreement Form Address Explain to your new customer, On this form, you re indicating the address where you want your monthly order shipped. Backup Order We have a great program that helps ensure that you ll never lose your Preferred Customer status. It s called your Backup Order. You can preselect your favorite products with a Select Pack. If you forget to shop, this Backup Order will help ensure you continue to enjoy your Preferred Customer discount and benefits. Help your customer understand that because Melaleuca can count on their order or Backup Order each month, Melaleuca can schedule production and lower costs of operating. As a result, your customer gets a 30 40% discount. Handling Payment Information When you shop, you are asked for your Melaleuca membership ID or your phone number. Then you ll place an order at the Preferred Customer discount of 30 40%. The Customer Service Representative will review the products you ordered, the quantity, and the cost, and then you will hear how many Product Points you have. Product Points are used to calculate Loyalty Shopping Dollars and commissions for Marketing Executives. Will it be more convenient to bill your credit card or your bank account? Melaleuca bills the bank directly, and you ll see the charge on your monthly statement. Most people use both so they can choose which is best for them each month. Enroller & Marketing Executive Blanks Say, This shows who enrolled you, which in our case would be me. The Marketing Executive is who earns a commission when you buy products. Select Marketing Executive The Marketing Executive is the person under whom you are directly placing your new customer. Signature Have the new customer sign the form, then move on to the Marketing Executive Agreement. Address Fill in the address and other information. If this is the same as the Customer Membership Agreement form, offer to fill this part in for each enrollee. Membership Kits If you re giving your new enrollee a Membership Kit, write in the number of that kit on the form. After Determining the Enrollee s Category After you ve determined the enrollee s level of interest, have them sign the Marketing Executive Agreement form (either in person or via fax). Essentials & Value Packs Mark the Essentials & Value Pack section. Call this in to the Customer Service Representative as an order. Double Check Check both forms to see that they are complete and that the carbons are readable. Send In Your Paperwork On Time Melaleuca must receive the paperwork by the last day of the month, by fax or mail. THE QUALITY ENROLLMENT A quality enrollment is one in which the customer enrolls and sends in their paperwork, purchases a Membership Kit, and places their order. He or she experiences a Delivering Wellness presentation that delivers a thorough understanding of the Melaleuca products, and the business opportunity. A quality customer understands the Preferred Customer agreement and sees the value in Melaleuca s products. Explain what being a Preferred Customer means and set a date for the 48-Hour Follow-Up. You ll have happier customers who will be more likely to stay with you for the long run. 22 Building Your Melaleuca Business 23

13 ACTIVITY 4: HOLD FOLLOW-UP MEETINGS WITHIN 48-HOUR The 48-Hour Follow-Up is a brief meeting scheduled to be held within 48 hours of enrollment to help customers become more familiar with Melaleuca and the shopping experience and for Marketing Executives to begin building a successful Melaleuca Business. In a followup meeting, the enroller introduces their new business builder to Melaleuca by answering questions, explaining the shopping process, teaching about the products, and often helping the new enrollee to start shopping. Give them an assignment and then follow up to make sure they are on the right course for success! During your follow-up meeting, help build your new Marketing Executive s contact list, do some role-playing, set appointments, and schedule a date for their first in-home. Teach them the basics of the Seven Critical Business-Building Activities, help them learn the ropes, and build their confidence and success. Set a date to advance to Director and work side by side with them to achieve their goal. The 48-Hour Follow-Up gives enrollers an opportunity to team up with new Marketing Executives. An enroller can help a new team member establish a contact list, schedule appointments, and do presentations. What the enroller does in the presence of the new Marketing Executive will duplicate throughout that new Marketing Executive s organization. One of the best activities guaranteed to bring results is the 48-Hour Follow-Up. It is proven to create quality enrollments and sustained growth. Businesses that consistently hold 48-Hour Follow- Up meetings have higher average commissions, higher average growth rates, lower attrition, more Essentials and Value Pack purchases, and more duplication through advancement. McKay Christensen President, Melaleuca In The 48-Hour Follow-Up Meeting (Category 2 And 3) Answer any questions your new enrollee may have about Melaleuca. Review Preferred Customer Program (and Backup Order) Clearly explain all of the benefits of being a Preferred Customer. Show the new customer all the services and benefits now available to them, emphasize the Preferred Customer discount on Melaleuca Products, and the 100% satisfaction guarantee. Take some time to explain the Backup Order, and be sure to mention the advantages the new enrollee will never have to worry about his Preferred Customer status, even if he does happen to forget to shop one month. Order a Essentials or Value Pack If they haven't purchased a Essentials or Value Pack, this is a good time to explain the benefits of ordering a Essentials or Value Pack. It s the best way to try a large selection of products, to develop compelling product stories, and to convert their home as quickly as possible, and at the best price possible. Discuss Your Enrollee s Why Review the written why your enrollee has created. Spend time talking with them about it, and ensure them that this will motivate them to build their business. Ask them questions such as, Where do you want to be a year from now? Five years from now? Why is that important? What will that allow you to do that is not currently possible? The more emotional ties to their goals, the more they ll be likely to achieve them. Review the Pacesetter Program and Compensation Plan Help your Marketing Executive understand that there are significant bonuses available if they move quickly in their advancement. Explain the bonuses available at each status advancement in both the Pacesetter and regular compensation plans. Schedule Action and Business Hours Determine the hours your new Marketing Executive wants to spend working their Melaleuca business. Make this as specific as possible. Have them get out their calendar and choose particular days of the week. This will not only help them to follow through on their commitment, but will help you to match their energy with your efforts. Melaleuca is a relationship business. You build relationships when you follow up. In follow-up meetings, you learn more about the business builder, and they learn more about you. They get a sense of your commitment and passion. This causes them to want to be the same way. Jeff Miller, Corporate Director II, Florida, USA Contact List Review the Marketing Executive s contact list. Be sure they have at least 100 names. If not, help them jog their memory to finish the list. (Use the hints and suggestions in this booklet, page 13.) Create an Action Plan Create a calendar for the next several weeks, and set a goal for the number of personal referrals for each week. Coordinate times to work together for training and practice. Schedule three to four possible dates for upcoming in-home presentations. Set a deadline for achieving Director status. Explain to your new Marketing Executive that they have one chance to create their story, and then they will tell it to others in their group over and over again. How will they feel if they are able to tell others that they achieved Director in two weeks? In one week? What will others think when they hear their story? Practice Approaches, Set Appointments Assist your enrollee in setting appointments. First, roleplay with them. Pretend to call them for an appointment and show them how to handle the call. Once you have practiced a few times, help them to make some calls and set up appointments. Help them follow up with their new customers. Order Extra Membership Kits If your Marketing Executives are going to advance to Director in a month or less, they will want to have extra Membership Kits to give their new customers, as a new customer should receive a Membership Kit immediately after the Delivering Wellness presentation. Encourage Marketing Executives to order Membership Kits for the upcoming appointments or to purchase the Pacesetter Pack with 10 Membership Kits and a Value or Essentials Pack. Explain Power Hour and Suggest Future Meetings to Attend Invite your new leader to a Power Hour meeting and other big training events held either locally or sponsored by the company. Explain how Power Hour and teaming up with other leaders can help them build a strong Melaleuca business quickly. Review Everything Allow your new Marketing Executive the opportunity to ask you any questions they may have regarding the information you have shared with them. Remind them that Melaleuca provides support materials to help them succeed, and that you are always there to answer their questions. ADDITIONAL TOOLS Check your Leadership in Action magazine for these helpful tools and more: 1. Marketing Executives can learn from successful Melaleuca leaders by listening to the B.E.S.T. series. Each month new training topics are presented on CD, narrated, narrated by one of Melaleuca s top Marketing Executives and covering various aspects of building your business. It s a great way to learn from the best. The success of your business starts with a resolution to treat your Melaleuca business like a business. That doesn t mean you have to work full-time, but in the time you do spend in Melaleuca, you need to treat it as seriously as you would treat your job or your own business. Alan Pariser, Corporate Director VII, Nevada, USA 24 Building Your Melaleuca Business 25

14 Four-Month Customer Follow-Up Guide The New Customer Follow-Up Center empowers you to track monthly follow-up activities for each of your customers and provides all the information you need to ensure your new customer has a world-class experience. You can track your customer s shopping activity, check the current status of paperwork, membership kits, and orders, all in one place! Business leaders that consistently follow-up with their new customers, and continue to follow-up each month, have higher average commissions, higher average growth rates, lower attrition, and more advancements in their organizations. Customer : Phone: Date Enrolled: Marketing Executive: Promotion: _ 1st Month 2nd Month 3rd Month 4th Month Phone: Do a quality Delivering Wellness Overview. Explain Preferred Customer program and Back Up Order. Help customer set up online account and Back Up Order. Enroll them and help place their first order. Exchange phone numbers and addresses with them. Invite them to an upcoming Melaleuca event. Place them on your list Welcome Letter. Send personal Welcome Card. Call new customer to check in when products arrive set a date with them to go shopping in Month 2. Ask how they re enjoying the products Favorite? Questions? Share a product experience the Vitality Pack with Oligo, Sol-U-Mel, MelaPower. Inform them about monthly specials and web specials. Help them shop. Ask if they d like to get their products paid for and consider referring customers. Thank them and tell them you ll check in again next month. product and/or business stories. Thank them for being a Preferred Customer. Ask how they re enjoying the products Favorite? Questions? Ask them for a product experience. Share a product experience introduce them to a product or category they haven t tried yet. Help them shop. Help them customize a Select Pack (if not already done). Ask for referrals! Continue ing product and/or business stories. Thank them for being a Preferred Customer. Help them shop. Ask if they re comfortable doing future shopping on their own. Help them put a Select Pack in place (if not already done). Invite them to a larger Melaleuca event or in-home presentation. PC Yes Date (Kit, order placed, PW in) Month 1 Shopping Value Pack/Essentials Pack Vitality 4 or 6 Total: Order #: Month 2 Shopping Value Pack/Essentials Pack Vitality 4 or 6 Month 3 Shopping Month 4 Shopping 9 Remember, it takes at least 4 months to develop new buying habits.0 26 Building Your Melaleuca Business 27

15 For many of us, recognition is more important than money. We want to be noticed. We want to be told that we re doing a good job. Stories sell. When we, in our meetings, tell the stories of our business builders, people identify with that. They think, You know what, I can do this business. They hear the stories of success, and they start to believe. Guillermo Covarrubias Corporate Director, California, USA ACTIVITY 5: CELEBRATE SUCCESS Celebrating success is a way to inspire people to set goals and achieve more than they ever thought possible. CELEBRATION: IT S REALLY THAT IMPORTANT The mission of Melaleuca is to help people reach their goals. To inspire and motivate people to that end, you must celebrate their accomplishments. Melaleuca thrives on celebration! From the smallest of achievements to the largest ones, from enrolling one customer to achieving Corporate Director, leaders need to feel good about what they re doing. When that happens, motivation increases, excitement grows, and abilities expand. In addition, celebration encourages repetition and helps establish great business-building habits. The following are several reasons why celebration is crucial to the success of your Melaleuca business: Celebration Creates Excitement Most new enrollees come to Melaleuca with a high level of enthusiasm. Celebrating success along the way helps sustain and refuel that level of energy. Recognition Is a Proven Motivator We all love to be recognized for our accomplishments. Whether it s a pat on the back, a high five, or a note saying, Job well done, all forms of recognition create positive reinforcement. Often, when someone else notices what we ve done, we re more likely to keep striving and pushing harder than ever. Rewards whether material, emotional, or spiritual are what makes hard work worthwhile. Sharing Success Builds Team Loyalty As a business builder, your goal is to build a cohesive team. A big part of that process is celebrating your team s success. Through the celebrations, you experience a strengthening of relationships, you feed off one another s energy, and you create a synergy that helps each of you work more effectively together than you would alone. Celebration Creates Repetition When people are rewarded for success, they tend to repeat the actions that lead them to that success. This is especially important in building a strong Melaleuca business. When you take time to reward and recognize the right type of activities, your team will be more likely to repeat these activities, creating greater success. Rewards endorse specific actions, behaviors, and values you are striving to teach. In Melaleuca, Relationships Count Melaleuca is a relationship business. By meeting new people, discovering their goals, and helping them reach those goals, you experience success yourself. Listen to your customers in your organization. Find out their strengths and weaknesses. Discover their dreams and goals. Sit down with them and show them the path to achieving those goals, then celebrate with them along the way. Measurement Is Key to Celebration By creating definite measurements for success, you have a reason to celebrate each time one of those measurements is reached. Without some sort of measurement, celebration would seem trivial and meaningless. Here are some measurable activities you can celebrate: 1. Achieving individual business goals 2. Gaining personal enrollments, achieving advancements, and demonstrating leadership 3. Accomplishing goals in a Fast Track or other grouporiented activity MAKE YOUR CELEBRATION EFFECTIVE How you celebrate should be wholly determined by who it is you re celebrating. It takes only a few minutes to figure out what people like, what parts of the business they may struggle with, and where they need encouragement. Once you ve done that, celebrate with them in a serious manner. Tell them just what they did that was successful. Be specific. Tell others about the hard work you ve witnessed. Let them know that you noticed their efforts. Your words and encouragement will likely mean more than any reward you can come up with. Attach a suitable reward on top of that and you ll create a moment in that person s life they will treasure for a long time. LEADERSHIP CELEBRATION MEETINGS The Leadership Celebration is an opportunity to celebrate with local leaders your achievements and the achievements of your team. It s a time to schedule action to move your business forward and help you reach your goals; and it s a chance to receive training from some of Melaleuca s best. Set small goals on the way to your larger goals, and when you achieve those goals, celebrate. Sometimes just determining how you will celebrate can help. 28 Building Your Melaleuca Business 29

16 Ways to Celebrate How to Celebrate ACTIVITY 6: ALWAYS BE INVOLVED WITH FAST TRACK Call Send a card or note Have dinner out Leadership Celebration Meetings Meeting recognition Send flowers Fast Tracks Open house Call the enrollers in your business. Let them know you care and you notice what they are doing. Simply say congratulations or thank you. If you don t reach them on the phone, leave a message congratulating them. Thank your customers for shopping. Share a positive product experience with them. Call to congratulate a Marketing Executive on his or her advancement. Send a thoughtful card to those who have advanced. Send a card to new customers thanking them for joining your team. Send a card congratulating new business builders on achieving their goals. Write a quick to build someone up let them know you've noticed how hard they ve worked. Send the to your entire organization ask others to reply to the celebrated person. Take your new Director out for dinner to their favorite restaurant. Invite everyone in your organization who has achieved Director. At every meeting, take a few moments at the beginning to recognize achievement. Say something, have the person stand up, let others applaud, hand out small prizes, and give time for public recognition and encouragement. Send a nice flower bouquet when they advance to Director or Senior Director. Send something small during the holiday season. Give Melaleuca products, or other small gifts. Invite people up in front of the room so all members can recognize and see them. Create an atmosphere of celebration and excitement for all members present. See more in the Activity Six summary. (See page 34 35) Conduct an hour of training followed by a potluck. Honor business builders, recognize success, and let everyone share what s working and what s not. What Is a Fast Track? A Melaleuca Fast Track is a results-driven program designed to help your organization grow. A series of meetings lasting between four and six weeks, the Fast Track helps participants set goals, create action plans, implement those plans, report results, and celebrate success. Team leaders provide motivation, support, and training, and facilitators organize the schedule and recognition awards. Five Essential Activities Make Up the Core of Every Fast Track Event 1. Assess the business and set goals. Fast Track participants determine where they would like to be by the end of the Fast Track period. Specific goals include number of enrollments, status level achieved, number of Essentials and Value Packs sold, number of appointments set, and in-home presentations. 2. Create an action plan. Each participant with the help of the team leader creates a detailed action plan for how they are going to achieve their goals. Using a calendar, they determine what day and time they are going to set appointments, hold a Delivering Wellness presentation, report to their team leader, and more. Only by creating this very detailed plan do goals become tangible. 3. Implement the plan. After the Fast Track meeting, the participant follows through on their action plan, tallying their results and reporting to their team leader on schedule. The Basics of a Successful Fast Track Time: The Fast Track is designed to run during the calendar month and should be scheduled on the same day, at the same time each week (always start on time). Consistency is vital to success. Who: Include committed Marketing Executives who work closely with one another in their businesses (e.g. your personally enrolled customers). Teams: Teams usually consist of 8 10 members. There is no limit to the number of teams, as long as you can manage the group size. Leaders: As a general guideline, team leaders should be Director II or above, as they need to have experience at personally enrolling customers and developing Directors. These leaders should also be organized, accountable, and willing to put in extra energy and effort to keep the team focused on goals. Fees: You may need to charge a fee for participation. This money helps provide recognition prizes and offsets any other related costs. Product Experiences: You should start every meeting with a product experience. Meeting after the meeting Conference calls Traveling trophies Take pictures Gift certificates Give Melaleuca products Hold contests After a business meeting, meet at a favorite restaurant or ice cream parlor, review topics discussed in the meeting, create energy and synergy. Once or twice a month, arrange a conference call, ask someone with experience to give training, use the first 10 minutes to recognize achievement by all who are on the call. Create a traveling trophy that s awarded to a selected individual (or couple) each month. Define the criteria and involve your leadership team in determining the winner. Take a picture of your new Marketing Executive being congratulated by you or another leader. Frame it and give it to the person. Give a gift certificate to a favorite restaurant, store, the movies, theme park, or for a massage. Give products, Melaleuca logo merchandise, business-building tools, or product brochures or information packets. Announce a contest to win a trip to the annual Melaleuca Convention, let everyone know the criteria, and award the trip at an evening meeting or dinner. 4. Report and celebrate success. Each week, team leaders report results for their teams. Most often, the results involve enrolling customers and developing new Directors. Those activities that meet the criteria for success are recognized. 5. Train and develop leaders. Take minutes of each Fast Track meeting to conduct training on the Seven Critical Business-Building Activities. When conducting your training, remember to briefly explain, demonstrate, practice, and evaluate. Where Should I Have The Fast Track? Hold your Fast Track anywhere that is conducive to group interaction. For smaller Fast Tracks, the home is usually the best place. For medium or large Fast Tracks, use a small conference room or meeting room. Melaleuca does not recommend that you spend a lot of money on the meeting location itself. The focus of the Fast Track should be on the critical activities to grow your business, not on the room décor. Goals: Goals should be set the first week and revised or added to each of the following weeks. Action Plans: After participants set goals, they should put an action plan into place to help reach those goals. Celebration: Personal accountability and reporting happen on a weekly basis. The facilitator establishes a recognition system and rewards everyone s accomplishments. Celebration of success is a key part of each weekly meeting. Participation: Once the last week is concluded, participants should be encouraged to attend the next Fast Track. 30 Building Your Melaleuca Business 31

17 FAST TRACK AGENDA First Week Welcome and Expectation Take a few minutes to welcome your participants. Explain that Fast Track is an action program designed to help organizations grow by enrolling customers and developing Directors. Conclude the welcome with product experiences and announcements. Subsequent Weeks Celebration: At the beginning of each Fast Track meeting, spend time recognizing individual participants and teams for their accomplishments. Concluding Week Celebration: You are now prepared for the best and most important part of Fast Track. Using the results reported by the Fast Track teams, recognize and celebrate the individual and team accomplishments. Make this exciting, filled with applause and recognition for a job well done! Training and Role-Playing Activities Training should be concise (10 15 minutes) and activity-based. Role-playing can be very helpful to participants. Remember to explain, demonstrate, practice, and evaluate. Weekly Goal Setting and Call to Action Marketing Executives involved with the Fast Track must set weekly goals. Help them assess their current business status and determine where they would like to be and what they would like to accomplish. Once a goal is set, help them set up action plans made up of specific activities they will need to perform to reach their goals. Implementation Define and write down specific times, places, and activities for the next week that will help participants complete their action plans. Each team leader should be responsible for assisting and mentoring their teams throughout the week. Report At each meeting, give time to report on previous goals. By setting goals and being accountable to those goals, participants will be able to focus on specific activities such as personally enrolling new customers and developing new Directors that will help their organizations grow. Challenge Weekly Fast Track meetings should end with a challenge that is specific to the next week. Break down the goal into accomplishable steps so the participants know exactly what they need to do during the next week to grow their businesses. Fast Track helps you stay focused week after week. If you ask our leaders about the secret to their success, many will tell you that the answer is Fast Track not only for themselves but for their entire organization. No one works harder than these leaders. Frank L. VanderSloot Melaleuca CEO Report: You should spend some time reporting on the previous week s goals. Accountability is key. Training and Role-Playing Activities: Conduct another training and/or role-playing exercise. Be careful to keep it under 15 minutes. Weekly Goal Setting and Call to Action: Follow the same plan as the first week in goal setting and action plans. Have every participant go over his or her goals and make adjustments as needed. Challenge: Challenge every team with goals for the next week. Training: Conduct the typical training session, perhaps tailoring this training to answer any final questions. Invitation: At the conclusion of your Fast Track, be sure to extend an invitation for the next Fast Track. If you have prepared prizes for the next Fast Track, announce those prizes. Review the accomplishments that were made during this Fast Track (such as number of new Directors, total number of new customers, etc.). Make sure any newly enrolled Marketing Executives who are committed to becoming a Director are invited to participate in the next Fast Track. Guidelines for Conducting Effective Meetings 1. Be on time Award points for being on time or hold on-time prize drawings 2. Attend all meetings Every meeting is essential for full benefits Each person who attends all meetings may receive extra bonus points 3. Keep all commitments During the Fast Track, you ll be asked to make commitments such as calling your group leader at a certain time each week and completing the goals you have set for yourself 4. Be courteous Everyone should be courteous to whomever has the floor No side talking or interrupting Be constructive in your comments; don t take the team off task 5. Report all totals accurately and before the deadline Helps things run smoothly All totals for the week must be called in by a prearranged deadline to the team leader Guidelines for Earning and Awarding Points Enrollments Give points for each enrollment. An enrollment counts only if 1) all the paperwork is completed, 2) the enrollment has been called into Melaleuca, 3) an order is placed, and 4) a Membership Kit has been purchased. Personal Directors Every time a team member personally enrolls and develops a Director, he or she would receive additional points. Team Enrollments If all team members enroll at least one Preferred Customer in any given week, each person may receive bonus points. Fast Track Enrollment Points may be given if a new Marketing Executive (in the Marketing Executive s organization) enrolls in an upcoming Fast Track. Essentials or Value Pack Points are given whenever a Essentials or Value Pack is ordered by a new customer. The order must have been placed with Melaleuca. The person who receives these points is the same person who would receive the S$50 / RM125 or S$75 / RM200 bonus (either the enroller or the assist). Shop Early Bonus points may be given if the business builder orders before the 15th of the month. Focusing on the Seven Critical Business-Building Activities is important, especially participating in Fast Track. Since my organization is growing larger and larger, having a Fast Track team has helped me stay connected. It also helps us stay accountable with our goals. My team has really become my family. Jennifer Coffel, Executive Director VI, Illinois, USA Role-Playing and Getting Results Following are several roleplaying suggestions for you to try in your Fast Track. Contact List Give your team three minutes to write down all the people they know who have the letter J in their name, all the people they know in the computer field, or use the Contact Suggestion List provided in this booklet (page 13). Break the contact list into categories. For example: past, present, and future contacts; A (really interested), B (might be interested), and C (customers only); or come up with your own system to organize your list. Contact Have team members write down a profile of someone on their contact list. Does she need more time with family? Does he work too many hours a week? Are they struggling to pay bills? See how much information each member can recall. Hold a phone party to set appointments. Presentations Break up into groups and have each participant present two or three pages from the Delivering Wellness presentation. The other members of the group give kind but honest feedback on the style, tone of voice, pacing, and body language of the presenter. Regularly Scheduled Fast Tracks Many successful Marketing Executives conduct regularly scheduled Fast Tracks every week. For example, the Fast Track is scheduled every Friday at 7:00 p.m. at the same location. The advantages are: No need to make numerous calls to invite once you have these running, the word gets out. No need to shuffle everyone s schedule to fit everyone knows to keep the same night open each week. No need to plan weeks in advance for time and location you know where and when it s happening every week. The Fast Track remains an open invitation for anyone who might be interested in teaming up to build their Melaleuca Businesses. This plan also works for regularly scheduled Delivering Wellness presentations. Tips For Fast Track Phone Parties Select a night and time when phone calling will be most productive. Break your teams into groups of 4 10 people, each with a phone. Choose one person to make the first call, then pass the phone around the table so each person has a turn. Briefly celebrate each appointment set. Remember to coach one another on ways to overcome concerns. Keep the environment fun and full of support. Track the results using a tally sheet. 32 Building Your Melaleuca Business 33

18 ACTIVITY 7: LEAD BY EXAMPLE I work hard with leaders in my organization who are also making the decision to build a business, and we start investing in each other s lives. If you want to work with committed individuals, you must care as much for their success as you do your own. Rebecca Connor Corporate Director III, Maryland, USA Melaleuca business leaders lead by example because they know their actions are usually duplicated by those in their organization. Are they professional, product-centered, and positive? If so, others will duplicate their actions. Are they disorganized, demanding, and late to meetings? If so, others will observe and duplicate those actions as well. Think of someone in your life who has been a great leader. If they were a great leader, they probably led by example. Typically, when we see someone who displays all the characteristics we would like to have, we are highly motivated to copy that person and thereby learn those skills ourselves. According to actor Will Rogers, People s minds are changed through observation and not through argument. As you go forward in all your Melaleuca activities, remember your people are watching you. Set a good example! Your first two months as a Melaleuca Marketing Executive are critical. You get only one chance to create your story make it as great as you can! Later, when you re referring new customers and trying to encourage them to build quickly, they ll want to know how you did it. You ll be telling your getting started story over and over again, so it s important to set your sights on reaching Director in your first month, and Director II in your second month. Convert Your Home to Melaleuca Products and Services What would you think if the CEO of Ford Motor Company drove a Toyota? If your favorite Mexican restaurant cook chose Taco Bell for lunch? Wouldn t you have a difficult time purchasing anything from these people? After joining Melaleuca, immediately convert your home to Melaleuca products and services. Learn everything you can about them, and get in the habit of consistently sharing product and service information with others. The people in your organization will follow your example and convert their own homes, spreading a powerful belief in the products and the services, and building a strong business foundation. How do you convert your own home? It s simple: Throw away all the products you currently use and replace them with Melaleuca products and tell people you only use safe and effective products in your home now. Then discontinue all of the services you currently use and replace them with Melaleuca services. Enjoy savings, greater customer service, and potentially greater earnings with Melaleuca services. In fact, it s proven that Melaleuca customers who participate in at least one of Melaleuca s services will double their longevity compared to those who don t participate. Image is for illustration purpose only. Product configurations may be different for different countries. Show Your Commitment Spend significant time following up with new customers and prospects. Make telephone calls, send s, write notes, or stop by to visit. The more involved you stay with your organization, the more motivated and encouraged people will feel. They will see your strong commitment to them and to the company, and, best of all, they will learn from your actions and do the same for the customers in their organizations. Drive Results If you don t get results in your business, not much else matters. Good leaders are those who are focused on delivering results. They continuously drive results in their organization. Responsibility Leaders are willing to take on the responsibility and go the extra mile to get the job done because they feel a strong responsibility to themselves and to others in their organization. When everyone else has given up, the strong leader goes that one extra step to create success. A Drive for Excellence Leaders have an inner motivation for excellence. Something inside drives them to continually improve. As a result, their presentations shine, they achieve more and more enrollments, and they create secure relationships with others in their businesses. Goal-Oriented Most achievers have a clear idea of what they want out of life, and they take the most efficient route to go after it. That means setting clear goals and developing a step-by-step action plan to achieve those goals. Write down your goals, even the smallest of them, and continue to revisit and revise every month, every week, every day. You ll be much more likely to stay on track as your business grows. Caring Melaleuca leaders have a true and sincere concern for the others in their organizations. They know that through helping others succeed, their businesses will prosper. Have you noticed that most successful people are friendly and people-oriented? This endears them to others and enables them to lead others to accomplish the task. Melaleuca s President, McKay Christensen, reminds Marketing Executives, Are you taking the time to recognize the people who are working hard in your organization? Perhaps if your business isn t growing as you expect, this will provide some muchneeded nourishment. 34 Building Your Melaleuca Business 35

19 Attend All Melaleuca Meetings As a Melaleuca leader, you should set the example by attending and supporting all Melaleuca meetings. Not only do they offer you inspiration, ideas, and the training you need to grow your Melaleuca business, they give you the opportunity to develop a reputation as a supportive, involved Melaleuca leader whom others will want to emulate. Attend all Melaleuca meetings, says CEO Frank L. VanderSloot. Even if you have heard it all before, your presence adds to everyone else s experience. Our culture needs to be one where, if there is a Melaleuca meeting in your area, people can count on your support. What meetings are available to you? Check the Business Center at Melaleuca. com/businesscenter for a complete list of Melaleuca meetings. Organizations are always creating their own meetings, led by experienced Melaleuca Marketing Executives and attended by business builders all over the area. If you find you need more meetings, by all means, create one yourself! Convention: Melaleuca s Convention is the most important event of the year for your business. At Convention, you can learn how to build and grow your Melaleuca organization. In addition, you ll see entertainment, hear important announcements, and receive valuable product information. Visit Malaysia.Melaleuca.com/Sg.Melaleuca. com. Launches: Business launches introduce new products, promote specials, and update leaders on the sales and marketing plans for Melaleuca. Locate the Launch meeting closest to you and be sure to attend. Monthly Leadership Celebration Meetings: As a Director, you can attend a Director Celebration meeting. Celebrate success, set goals and schedule action. Create new relationships, give new Directors in your organization a connection with others, keep your new Directors dreaming, and get your organization focused on Director development. Executive Director Presentations: Executive Directors frequently travel to meetings around the country. They may conduct training, demonstrate a presentation, or help others present. These meetings are valuable to all Marketing Executives because of the opportunity for sharing knowledge, techniques, and ideas. Workshops and Trainings: Held by experienced Melaleuca leaders and members of management, these trainings are invaluable in the information and knowledge that is shared and practiced. Monthly Company-Sponsored Conference Calls: These calls announce the promotion of the month, provide inspiration, and keep listeners informed of the latest developments. Fast Tracks: A high-energy schedule of six consecutive meetings, Fast Track is a results-oriented program that helps business builders achieve their goals. Marketing Executives who are serious about their goals should consistently enroll in Fast Tracks. General Meetings: If you know about a Melaleuca presentation or other meeting occurring in your area, attend! It s a great way to show your support, build your reputation, share with other business builders and gather new ideas. YOUR ROLE AT A MEETING Remember, what you do gets duplicated and others are watching you at meetings. So be sure to: Set a good example! Sit in the front row Be on time Pay attention Help make the product display attractive Welcome new people Introduce yourself Tell a product experience Clap, cheer, participate Celebrate those who have experienced recent accomplishments Show appreciation and support Cultivate a Positive Attitude Two key components of leadership are attitude and integrity. Melaleuca thrives on both! Renowned leadership author John C. Maxwell teaches, People catch our attitudes just like they catch our colds by getting close to us. It s important that I possess a great attitude, not only for my own success, but also for the benefit of others. Even if people are drawn to you, they won t follow you unless they know you are a person of integrity. Maxwell calls integrity the most important ingredient of leadership. When I have integrity, my words and deeds match up. I am who I am, no matter where I am or who I am with. Integrity is critical to your business success because Melaleuca is largely based on relationships. Dishonesty, exaggerations, gossip, poor follow-up, egotism, and duplicity are quickly recognized and communicated from person to person in an organization. Nothing could be more detrimental to your success! Don t expect to just stumble onto success. Go in search of your goals, overcome limitations, and choose to focus the use of your time on effective activities. In building a Melaleuca business, there are specifically seven critical activities that will lead to success. I guarantee that if you do them, you won t look back with regret. A person with integrity is a whole person one whose actions match up with her system of values. This helps a leader to earn the trust of those who follow. Frank L. VanderSloot, Melaleuca CEO Integrity builds trust and helps people feel confident in your words and deeds. The more integrity you have, the more you can influence others. Leaders must live by higher standards than their followers, says John Maxwell. In Melaleuca, there are no shortcuts. We cannot expect any more from others than we are willing to do ourselves. 36 Building Your Melaleuca Business 37

20 Achieving Financial Freedom The Melaleuca Compensation Plan If you re looking for a way to earn extra money or reduce expenses, Melaleuca has the answer. With a straightforward, proven approach, Melaleuca gives you the opportunity to get out of debt and enjoy life to its fullest. In a world of economic uncertainty, Melaleuca s work-from-home opportunity helps many families use their spare time to help others enjoy the benefits of health-promoting products while earning the extra money they need. True financial prosperity is about more than owning the flashiest car or living in the most luxurious home. It s about peace of mind, security, and stability. For years, Melaleuca CEO Frank L. VanderSloot has taught the principles of financial wellness: spending less than you make, paying off debt, and saving for a rainy day. Melaleuca not only teaches these principles of financial freedom, it rewards those who practice it in their daily lives. Throughout the years, Melaleuca has celebrated with hundreds of Marketing Executives who have used their Melaleuca income to pay off their debts. To date, dozens of Marketing Executives have even paid off their mortgages using their residual income. Being rich is one thing. Having true financial freedom is something entirely different. Melaleuca can be your vehicle to true financial prosperity. Melaleuca s Compensation Plan is designed to reward Independent Marketing Executives who refer customers to Melaleuca products. The income you earn from your Melaleuca business is determined by three factors: the number of customers you have, the amount each customer purchases each month, and your effectiveness in building a marketing organization that includes other Marketing Executives who help you expand your customer base as they build their own marketing organizations. Melaleuca CEO Frank L. VanderSloot watches as Executive Director III Stacy Bodnar burns her mortgage and celebrates total financial freedom. Melaleuca s Consumer Direct Marketing program provides the opportunity for people to succeed through their own efforts. Tens of thousands of families are now competing directly with major manufacturers of nutrition, pharmaceutical, bath & body, and home care products and winning! When customers purchase Melaleuca products each month, profits from those sales go directly to families across Malaysia and Singapore rather than to large corporations. Frank L. VanderSloot, Melaleuca CEO The key to understanding the Melaleuca Compensation Plan is to remember that all commissions and bonuses earned are based on the sale of products to end consumers. End consumers are customers who purchase products to use in their homes. You do not earn commissions and bonuses for recruiting or signing up customers but you will be paid commissions whenever those customers buy products. And that can mean monthly residual income for years to come. The information on the next few pages explains the Compensation Plan, and is not representative of what any Marketing Executive will earn. Any representation or guarantee of specific earnings would be misleading. Success with any business takes hard work, diligence, perseverance, and leadership. Success with Melaleuca will depend on how effectively a Marketing Executive exercises those qualities. 38 Building Your Melaleuca Business 39

21 What Are the Ways to Earn Compensation with Melaleuca? Following are several ways in which you can earn monthly commissions and bonuses as a Melaleuca Marketing Executive. How Much Can You Earn as You Get Started? Once you ve enrolled, determined your participation category, and reviewed your beginning checklist, you may wonder: What can I earn as I get started? Product Introduction Commission: When you quality enroll a Preferred Customer in a month, you can earn a Product Introduction Commission of S$30 / RM75. If the customer purchases an Essentials or Value Pack, that bonus will increase to S$60 / RM150 or S$125 / RM300. Customers may purchase up to two Essentials or Value Packs in the first two months following the month of enrollment. The commission is only paid on the first pack purchased. Quality Customer Enrollment: A quality enrolled customer will have a Membership Kit on file. All necessary paperwork must be received by Melaleuca, and they will have fulfilled their monthly Product Point commitment by placing an order in their first month. (Receiving a Backup Order or Select Pack will not qualify them as a quality customer.) Personally Enrolled Customer Commission: Beginning with your personal customers second month purchases, you can earn 7%, 14%, or 20% of the Product Points they purchase monthly. Organization Commission: You earn 7% commission on the Product Points purchased each month by customers enrolled by others in your organization. One-Time Advancement Bonus/Pacesetter Bonus: As you advance your business to a new status, you qualify to earn one-time advancement bonuses for each new status you achieve. If you rapidly advance through the Director ranks, you can qualify to double each of these advancement bonuses and can earn more than S$19,600 / RM46,500 from the One-Time and Pacesetter Bonuses. Commission Rate must be equal to or higher than that of your advancing personal each time they advance in status. Leadership Pools: As your business grows, you can participate in a monthly leadership pool based on the increase of new customers in your organization. Leadership Growth Bonus: When a Commission Rate Senior Director or above develops a new first-time Personally Enrolled Director in the month, they receive a minimum of S$300 / RM600 to be paid out of the Leadership Pool for each new Director. This Personally Enrolled Director must be from the Marketing Executive s home country group to qualify for this bonus. For example, if you develop 2 new directors, you would be guaranteed a minimum payout of S$600 / RM1,200 from the Leadership Pools for that month. One-third of the bonus may be earned in months in which the leader has growth in the current month, but has no growth over the rolling three-month average. Financial Freedom Bonus: Senior Directors can earn S$600 / RM1,500 per month and Executive and Corporate Director can earn S$1,500 / RM3,750 per month. Anyone can build this business to any height they desire. I know many Marketing Executives in my organization who are making $500 to $1,000 every month. And that is residual! What a marvelous feeling to help someone else change their life and financial situation. Deborah McKechnie Executive Director III, North Carolina, USA Earnings in One Year Marketing Executives in 2012 who achieved the status of Senior Director and above on the Pacesetter schedule earned significant income from their Melaleuca businesses. Low S$36,651 / RM75,745 High S$491,282 / RM1,015,315 Average S$93,489 / RM193,211 Whatever your goal, it s here for you if you re willing to put forth the effort. You can reach your goals. We know we did it. Bruce and Kirstin Newby Corporate Directors, Texas, USA There is no limit to how much you can earn in your Melaleuca business. It s all up to you your efforts, your time commitment, your ability to learn and duplicate proven methods, and your dedication to success. The faster you build your business and the more customers who join your organization, the more success you will enjoy. Melaleuca offers a unique bonus to those who move quickly soon after they enroll. The Pacesetter Bonus allows advancing Directors the opportunity to double their one-time advancement bonuses through the Director levels, including advancement to Senior Director. The table on the next page shows an example of the potential income available when you follow the Pacesetter Program. POTENTIAL EARNINGS IN THE FIRST TWO MONTHS (for Categories 2 and 3) Following is a realistic example of how much you can earn in your first two months with Melaleuca if you achieve the status of Director and Director II. Earn S$800+ / RM2,000+ Your First Month Achieve Director Product Introduction Commission (on 4 new preferred customers)... S$120 / RM300 Product Introduction Commission with Value Pack (on 4 new preferred customers)... S$240 / RM600 Pacesetter Director Bonus... S$200 / RM500 Total....S$560 / RM1,400 The average earnings of those who reach Director in their first month is S$921/RM1,904 Earn S$1,020/RM2,600 Your Second Month Achieve Director II Product Introduction Commission (on 4 new preferred customers)... S$120 / RM300 Product Introduction Commission with Value Pack (on 4 new preferred customers)... S$240 / RM600 Pacesetter Director 2 Bonus...S$400 / RM1,000 Organization Commission (from 1st month enrollees)... S$280 / RM700 Total....S$1020 / RM2,600 Leadership Development Bonus: Each time one of your personal Marketing Executives advances to Director and above you earn an amount equal to 50% of the One-Time Advancement (or Pacesetter) Bonus paid to your advancing personal each time they advance in status. To qualify for the Leadership Development Bonus your For a complete representation of what Marketing Executives earn with their Melaleuca business, see the Compensation Plan or the Income Statistics in this booklet. All data based upon North America. 40 Building Your Melaleuca Business 41

22 The Pacesetter Program Compensation Summary PACESETTER BONUS The Pacesetter Program is part of Melaleuca s Compensation Plan. New enrollees can earn up to S$200 / RM500 when they buy a Essentials Pack or Value Pack and become a Director. This bonus rewards new enrollees for moving rapidly to Director level. To Qualify for the S$200 / RM500 Pacesetter Director Bonus: 1. Buy a Value or Essentials Pack, and 2. Become a Director within the first two calendar months following your month of enrollment. PACESETTER BONUS FOR DIRECTORS & SENIOR DIRECTORS Advancing Directors through Senior Director, and Advancing Senior Directors II through Senior Directors IX, can double their One-Time Advancement Bonuses each time they advance, depending on whether they meet the Pacesetter timeline. Status One-Time Advancement Bonus Pacesetter Bonus Example If you enroll on August 15, August would be your month of enrollment. You have two calendar months September and October, in this case to achieve Director status. You would then need to advance one Director status each month to continue on Pacesetter time frame. Note: PEG (Personal Enrollee Group) volume is the total organizational Product Point volume of a Marketing Executive's Personal Enrollees in any given month. *Must earn at least one Leadership Point in any 3 month period to qualify. New Pacesetter Director Minimum # of Personally Enrolled Customers Average Leadership Points Required Personal Directors Required Months to Qualify from Time of Enrollment Director S$100 / RM250 S$200 / RM * 0 2 Months Director II S$200 / RM500 S$400 / RM1, Months Director III S$300 / RM750 S$600 / RM1, Months Director IV S$400 / RM1,000 S$800 / RM2, Months Director V S$500 / RM1,500 S$1,000 / RM3, Months Director VI S$800 / RM2,000 S$1,600 / RM4, Months Director VII S$1,000 / RM2,250 S$2,000 / RM4, Months Director VIII S$1,300 / RM3,000 S$2,600 / RM6, Months Director IX S$1,600 / RM4,000 S$3,200 / RM8, Months Senior Director S$3,600 / RM8,000 S$7,200 / RM16, Months Months Since Achieving Sr. Dir. Senior Directior II 5% of PEG 10% of PEG Month Senior Director III 5% of PEG 10% of PEG Months Senior Director IV 5% of PEG 10% of PEG Months Senior Director V 5% of PEG 10% of PEG Months Senior Director VI 5% of PEG 10% of PEG Months Senior Director VII 5% of PEG 10% of PEG Months Senior Director VIII 5% of PEG 10% of PEG Months Senior Director IX 5% of PEG 10% of PEG Months Executive Director 10% of PEG Months Product Introduction Commission. When you quality enroll a Preferred Customer in a month, you can earn a Product Introduction Commission of S$30/RM75. If the customer purchases a Value or Essentials Pack, that bonus will increase to S$60/RM150 or S$125/RM300. Customers may purchase up to two Essentials or Value Packs in the first two months following the month of enrollment. The commission is only paid on the first pack purchased. Quality Customer Enrollment. A quality-enrolled customer will have a Membership Kit on file. All necessary paperwork must be received by Melaleuca, and they will have fulfilled their monthly Product Point commitment by placing an order in their first month. (Receiving a Backup Order or Select Pack will not qualify them as a quality customer.) Here s How the Essentials/Value Pack Bonus Compares: New Customer Purchases 35+ Product Points A Value Pack An Essentials Pack You Now Earn S$30/RM75 S$60/RM150 S$125/RM300 To Qualify for Personally Enrolled Customers and Organization Commissions paid to the support team on customers purchases in their first three months, each customer must purchase a Membership Kit and place a minimum product point order. Personally Enrolled Customer Commission. As an Active Director, the commission paid on your personal customers Product Point purchases increases to 14% (with 8 to 19 personal customers). When your active personally enrolled customers increase to 20, you earn 20% on all Product Points, up to 150, generated by each of those customers each month. Organization Commissions. Each month that you qualify, you will receive a commission of 7% on the first 150 Product Points purchased by each customer in your Marketing Organization. You earn the Organization Commissions from customer purchases in months following the customer s month of enrollment. To qualify for commissions in the customer s second and third months, the customer must shop and place a minimum Product Point Order. 20/20 Bonus. Directors who develop 20 personally enrolled Preferred Customers in their first five calendar months (month of enrollment plus four additional months) will earn a one-time bonus of S$500 / RM1,000. One-Time Advancement Bonuses. When you advance to Director and each Director status through Director IX for the first time, you earn a One-Time Advancement Bonus beginning with S$100 / RM250 at Director and increasing to S$1,600 / RM4,000 at Director IX. When you advance to Senior Director for the first time you receive a One-Time Advancement Bonus of S$3,600 / RM8,000. However, when you advance in Pacesetter time frame, your advancement bonus is doubled at each qualifying status. When you advance for the first time to Senior Director II through Senior Director IX, you receive a full 5% of your Personal Enrollee Group volume as a one-time bonus, or if you advance in Pacesetter time frame your advancement bonus is doubled to a full 10% of your Personal Enrollee Group volume! When you advance to Executive Director through Corporate Director IX you receive 10% of your Personal Enrollee Group volume as a one-time bonus. Advancement Bonus Payouts. Marketing Executives are paid a One-Time Advancement Bonus or Pacesetter Bonus in the month they advance to Director for the first time. 1. As Marketing Executives advance from Director to Director II and beyond, they are paid an Advancement Bonus for each new high status they achieve. Marketing Executives advancing to Director II thru Director VI for the first time will receive their Advancement Bonus or Pacesetter Bonus in the month of advancement if they have an Organization Retention Rate of 90% or higher. Marketing Executives who have an Organization Retention Rate that is less than 90% will receive the Advancement Bonus after the new status has been held for 3 consecutive months. 2. Beginning with advancements to Director VII and above, Marketing Executives who have an Organization Retention Rate of 90% or higher will receive 1/3 of the Advancement Bonus or Pacesetter Bonus in the month of advancement, 1/3 the second month and one-third in the third month (assuming they maintain that status for consecutive months). All other Marketing Executives must maintain their new status for three (3) consecutive months to receive the One-Time Advancement Bonus or Pacesetter Bonus. The Organization Retention Rate is calculated by taking the total number of cancellations in the current month divided by the total number of Preferred Customers in the organization at the end of the previous month and subtracting that from 100%. For example, if you had 100 Preferred Customers at the end of last month and a total of 5 cancellations in the current month, your Organization Retention Rate is 95% (100 (5/100)) = 95%. Marketing Executives who have an Organization Retention Rate less than 90% will be paid the Advancement Bonus after they have held that status for 3 consecutive months. If, however, a Marketing Executive who has advanced to Director VII and above, increases their Organization Retention Rate to 90% or above during any of the 3 qualifying months, they will be paid 1/3 of the Advancement Bonus as part of that month s commission check. When a Marketing Executive, who has advanced to Director VII and above, qualifies for an Advancement Bonus and has a qualifying Organization Retention Rate of 90% or higher, 1/3 of the Advancement Bonus will be paid out with that month s commission check. If the Marketing Executive does not maintain that status the next month, the unpaid portion of that Advancement Bonus will be deferred until they reach that status again. 42 Building Your Melaleuca Business 43

23 Singapore *Directors and above are guaranteed to earn the Personally Enrolled Customer Commission on the customers they personally introduced and enrolled in Melaleuca even if the Director produces no Leadership Points in any given month. In any three month period, if a Director earns at least one Leadership Point, he/she will be eligible to earn organization and leadership bonuses as shown above. Senior Directors and above who have developed a new Personal Director in the last three months or two Personal Directors in the last six months and whose status is equal to or greater than an advancing Personal Enrollee, can qualify for this bonus. Corporate Director IX , , credits % 7% Unlimited 10% of PEG - $1, Corporate Director VIII , , credits % 7% Unlimited 10% of PEG - $1, Corporate Director Leadership Corporate Director VII , , credits % 7% Unlimited 10% of PEG - $1, Corporate Director VI , , credits % 7% Unlimited 10% of PEG - $1, Corporate Director V , , credits % 7% Unlimited 10% of PEG - $1, Corporate Director IV , , credits % 7% Unlimited 10% of PEG - $1, Corporate Director III , , credits % 7% Unlimited 10% of PEG - $1, Corporate Director II , , credits % 7% Unlimited 10% of PEG - $1, Corporate Director , , % 7% Unlimited $150, % of PEG - $1, Executive Director IX , , % 7% Unlimited 10% of PEG - $1, Executive Director Leadership Executive Director II ,000 70, % 7% Unlimited 10% of PEG - $1, Executive Director III ,000 90, % 7% Unlimited 10% of PEG - $1, Executive Director IV , , % 7% Unlimited 10% of PEG - $1, Executive Director V , , % 7% Unlimited 10% of PEG - $1, Executive Director VI , , % 7% Unlimited 10% of PEG - $1, Executive Director VII , , % 7% Unlimited 10% of PEG - $1, Executive Director VIII , , % 7% Unlimited 10% of PEG - $1, Executive Director ,000 50, % 7% Unlimited 10% of PEG - $1,500 - $750/ $1,500 Senior Director IX ,000 40, % 7% Unlimited 5% of PEG or 10% of PEG $600 - $750/ $1,500 Senior Director Senior Director VIII ,000 35, % 7% Unlimited 5% of PEG or 10% of PEG $600 - $750/ $1,500 Senior Director VII ,000 32, % 7% Unlimited 5% of PEG or 10% of PEG $600 - $750/ $1,500 Senior Director VI ,500 30, % 7% Unlimited 5% of PEG or 10% of PEG $600 - $750/ $1,500 Leadership Senior Director V ,000 27, % 7% Unlimited 5% of PEG or 10% of PEG $600 - $750/ $1,500 Senior Director IV ,500 25, % 7% Unlimited 5% of PEG or 10% of PEG $600 - $750/ $1,500 Senior Director III ,000 22, % 7% Unlimited 5% of PEG or 10% of PEG $600 - $750/ $1,500 Senior Director II ,500 20, % 7% Unlimited 5% of PEG or 10% of PEG $600 - $750/ $1,500 Senior Director ,000 17, % 7% Unlimited $3,600 or $7,200 $600 50% 100% Director IX ,500 15, %/20% 7% $7,200 $1,600 or $3,200 50% 100% - Director VIII ,000 12, %/20% 7% $6,000 $1,300 or $2,600-50% 100% - Director Leadership Director III ,500 1, %/20% 7% $1,800 $300 or $600-50% 100% - Director IV ,000 2, %/20% 7% $2,500 $400 or $800-50% 100% - Director V ,500 5, %/20% 7% $3,000 $500 or $1,000-50% 100% - Director VI ,000 7, %/20% 7% $4,500 $800 or $1,600-50% 100% - Director VII ,500 10, %/20% 7% $5,000 $1,000 or $2,000-50% 100% - Director II , %/20% 7% $900 $200 or $400-50% 100% - - Director * %/20% 7% $750 $100 or $200-50% 100% - - Customer Referrals Marketing Exec. III % 7% $ Marketing Exec. II % 7% $ Marketing Executive % 7% $ Status Number of Generations on Which Organization Commission Is Paid Minimum Monthly Product Point Production Required for this Status Minimum Number of Active Personal Customers Required for this Status Average Monthly Leadership Point Production Required for this Status (3-Month Average) Monthly Organization Product Points Required Monthly Personal Enrollee Group Volume Required Commission Rate Personally Enrolled Directors Commission Rate Personally Enrolled Senior Directors Commission Rate Personally Enrolled Executive Directors Months Since Enrollment Since Achieving Senior Director First Generation Positions Available Personal Customer Commission Product Introduction and Essentials / Value Pack Commission Organization Commission Maximum Organization Commission Available One-Time Advancement Bonus or Pacestter Bonus Financial Freedom Bonus Leadership Development Bonus Leadership Development Bonus for Qualifying Seniors and Above Leadership Growth Bonus Leadership Pools The Melaleuca Compensation Plan Additional requirements may apply. Interpretation of the Compensation Plan is solely at the discretion of Melaleuca. See Statement of Policies #44. Pacesetter Schedule Residual Income for work you ve done Organization Commission Residual income paid on work done by others in your organization Advancing and Helping Others to Advance Bonuses paid when you advance from one status to the next or help others to advance to the next status Leadership Pools Bonuses paid when you grow your organization Qualifications Personal Commissions Leadership Bonuses 44 Building Your Melaleuca Business 45

24 Malaysia *Directors and above are guaranteed to earn the Personally Enrolled Customer Commission on the customers they personally introduced and enrolled in Melaleuca even if the Director produces no Leadership Points in any given month. In any three month period, if a Director earns at least one Leadership Point, he/she will be eligible to earn organization and leadership bonuses as shown above. Senior Directors and above who have developed a new Personal Director in the last three months or two Personal Directors in the last six months and whose status is equal to or greater than an advancing Personal Enrollee, can qualify for this bonus. Corporate Director IX , , credits % 7% Unlimited 10% of PEG - RM3, Corporate Director VIII , , credits % 7% Unlimited 10% of PEG - RM3, Corporate Director Leadership Corporate Director VII , , credits % 7% Unlimited 10% of PEG - RM3, Corporate Director VI , , credits % 7% Unlimited 10% of PEG - RM3, Corporate Director V , , credits % 7% Unlimited 10% of PEG - RM3, Corporate Director IV , , credits % 7% Unlimited 10% of PEG - RM3, Corporate Director III , , credits % 7% Unlimited 10% of PEG - RM3, Corporate Director II , , credits % 7% Unlimited 10% of PEG - RM3, Corporate Director , , % 7% Unlimited RM300, % of PEG - RM3, Executive Director IX , , % 7% Unlimited 10% of PEG - RM3, Executive Director Leadership Executive Director II ,000 70, % 7% Unlimited 10% of PEG - RM3, Executive Director III ,000 90, % 7% Unlimited 10% of PEG - RM3, Executive Director IV , , % 7% Unlimited 10% of PEG - RM3, Executive Director V , , % 7% Unlimited 10% of PEG - RM3, Executive Director VI , , % 7% Unlimited 10% of PEG - RM3, Executive Director VII , , % 7% Unlimited 10% of PEG - RM3, Executive Director VIII , , % 7% Unlimited 10% of PEG - RM3, Executive Director ,000 50, % 7% Unlimited 10% of PEG - RM3,750 - RM1,750/ RM3,500 Senior Director IX ,000 40, % 7% Unlimited 5% of PEG or 10% of PEG RM1,500 - $1,750/ RM3,500 Senior Director Senior Director VIII ,000 35, % 7% Unlimited 5% of PEG or 10% of PEG RM1,500 - $1,750/ RM3,500 Senior Director VII ,000 32, % 7% Unlimited 5% of PEG or 10% of PEG RM1,500 - $1,750/ RM3,500 Senior Director VI ,500 30, % 7% Unlimited 5% of PEG or 10% of PEG RM1,500 - $1,750/ RM3,500 Leadership Senior Director V ,000 27, % 7% Unlimited 5% of PEG or 10% of PEG RM1,500 - $1,750/ RM3,500 Senior Director IV ,500 25, % 7% Unlimited 5% of PEG or 10% of PEG RM1,500 - $1,750/ RM3,500 Senior Director III ,000 22, % 7% Unlimited 5% of PEG or 10% of PEG RM1,500 - $1,750/ RM3,500 Senior Director II ,500 20, % 7% Unlimited 5% of PEG or 10% of PEG RM1,500 - $1,750/ RM3,500 Senior Director ,000 17, % 7% Unlimited RM8,000 or RM16,000 RM1,500 50% 100% Director IX ,500 15, %/20% 7% RM18,000 RM4000 or RM8,000 50% 100% - Director VIII ,000 12, %/20% 7% RM15,000 RM3000 or RM6,000-50% 100% - Director Leadership Director III ,500 1, %/20% 7% RM4500 RM750 or RM1,500-50% 100% - Director IV ,000 2, %/20% 7% RM6000 RM1000 or RM2,000-50% 100% - Director V ,500 5, %/20% 7% RM8000 RM1500 or RM3,000-50% 100% - Director VI ,000 7, %/20% 7% RM10,000 RM2000 or RM4,000-50% 100% - Director VII ,500 10, %/20% 7% RM12,500 RM2250 or RM4,500-50% 100% - Director II , %/20% 7% RM2250 RM500 or RM1,000-50% 100% - - Director * %/20% 7% RM2000 RM250 or RM500-50% 100% - - Customer Referrals Marketing Exec. III % 7% RM Marketing Exec. II % 7% RM Marketing Executive % 7% RM Status Number of Generations on Which Organization Commission Is Paid Minimum Monthly Product Point Production Required for this Status Minimum Number of Active Personal Customers Required for this Status Average Monthly Leadership Point Production Required for this Status (3-Month Average) Monthly Organization Product Points Required Monthly Personal Enrollee Group Volume Required Commission Rate Personally Enrolled Directors Commission Rate Personally Enrolled Senior Directors Commission Rate Personally Enrolled Executive Directors Months Since Enrollment Since Achieving Senior Director First Generation Positions Available Personal Customer Commission Product Introduction and Essentials / Value Pack Commission Organization Commission Maximum Organization Commission Available One-Time Advancement Bonus or Pacestter Bonus Financial Freedom Bonus Leadership Development Bonus Leadership Development Bonus for Qualifying Seniors and Above Leadership Growth Bonus Leadership Pools The Melaleuca Compensation Plan Additional requirements may apply. Interpretation of the Compensation Plan is solely at the discretion of Melaleuca. See Statement of Policies #44. Pacesetter Schedule Residual Income for work you ve done Organization Commission Residual income paid on work done by others in your organization Advancing and Helping Others to Advance Bonuses paid when you advance from one status to the next or help others to advance to the next status Leadership Pools Bonuses paid when you grow your organization Qualifications Personal Commissions Leadership Bonuses

25 The Leadership Development Bonus How you earn this bonus: Help your personally enrolled Marketing Executive advance to Director and above. To qualify, your Commission Rate must be equal to, or higher than, that of your advancing personally enrolled Marketing Executive. What you earn: You will earn an amount equal to 50% of the one-time Advancement (or Pacesetter) Bonus paid to your advancing personal each time they advance in status. When this bonus is paid: You are paid in any month in which your personally enrolled Marketing Executive is paid an Advancement or Pacesetter bonus. You are paid on every advancement! To earn the Leadership Development Bonus, your advancing personal needs to advance in the same month they achieve the organization volume required for the status or do so within the two months following the month they first achieved the required organization volume. In other words, your personal needs to have the required number of personal Directors during the first month he or she reaches the organization volume of the new status (there will be a threemonth grace period for this requirement, i.e. two additional months to develop the required number of Directors). If Senior, Executive, and Corporate Directors have developed at least one new Director in the previous three months (or two new Directors in the previous six months) who maintain their status, they will earn 100% of the one-time Advancement (or Pacesetter) Bonus paid to their advancing personal enrollees that month. They'll receive this bonus each time their personal enrollee advances in status on each advancement up to Senior Director! Senior, Executive, and Corporate Directors will earn S$750/ RM1,750 each time their personal advances to a status of Senior Director II through Executive Director. Or if a Senior, Executive, or Corporate Director has developed at least one new Director in the prior three months (or two new Directors in the previous six months), they will be paid S$1,500 / RM3,500 each time their personal advances to a status of Senior Director II through Executive Director. Director Development Incentive. In any month in which a Director or above develops a new personal Director, the Leadership Point requirements for status will be waived for that month and the following two months as long as the personal Director remains at Commission Rate. Directors II and above will earn 10 or 15 Leadership Points for developing a new Director. Enroller 3 Leadership Points ADDITIONAL INCENTIVES 20/20 Club Marketing Executives who develop 20 personally enrolled Preferred Customers earn the 20/20 Club award. Certificates of Achievement and Recognition Each time Marketing Executives advance to a new status, they receive a Certificate of Achievement, a gold pin signifying the status achievement, and are recognized in the Leadership in Action magazine. Financial Freedom Bonus: Advance your business to Senior Director and you can qualify to receive the monthly Financial Freedom Bonus. Senior Directors can earn S$600 / RM1,500 per month and Executive and Corporate Director can earn S$1,500 / RM3,750 per month. Leadership Pools Commission Rate Directors III and above can participate in a monthly Leadership Pool. Directors III through IX, Senior Directors, and Executive/Corporate Directors share in the pools according to the Pool Formula. The Pool Formula is: (Retention Factor x Average Net Preferred Customer Growth x Status Factor) + Average Leadership Points. Leadership Points: Leadership Points measure the level of support a Marketing Executive provides to his or her organization. Melaleuca s Compensation Plan requires each Director II and above to regularly produce Leadership Points. Up to six Leadership Points are available for enrolling a new Preferred Customer. These six Leadership Points are distributed as follows: Presenter Essentials/ Value Pack 2 Leadership Points 1 Leadership Point Earned by the enroller who is the Marketing Executive who provided the name of the new Preferred Customer. Earned by the Marketing Executive who gave the majority of the presentation that resulted in the enrollment of the Preferred Customer. Awarded to the presenter if the new Preferred Customer purchases a Essentials or Value Pack during the month of enrollment. Leadership Pools Directors III through Directors IX with growth in the number of net Preferred Customers share in the Director Pool according to The Pool Formula. Senior and Executive Directors with growth in the number of net Preferred Customers in their organization (over a rolling 3-month average) earn a Leadership Growth Bonus, plus share in the remaining pool dollars according to The Pool Formula. The Pool Formula (Retention Factor x *Net Preferred Customer Growth x Commission Rate Status Factor) + Average Leadership Points = Pool Points (used to calculate your share of the total Pool) 1) Retention Factor: Calculated by first determining the number of Preferred Customers enrolled in the organization in each of the previous five months. Then determine how many of those originally enrolled customers are Preferred in the current month. Next the number of Preferred Customers still remaining is divided by the number of Preferred Customers originally enrolled (customers remaining/ customers originally enrolled). This process is repeated for each of the past five months. This will result in five percentages one for each of the past five months. Finally, add those percentages together and divide by 5. The resulting number is the 5-month ARI or Average Retention Index for the current month. If the ARI is in the top third of those in the Leadership Pool, a Retention Factor of 3 will be assigned for the Pool Calculation. If the ARI is in the middle third of those in the Leadership Pool, a Retention Factor of 2 will be assigned. If the ARI is in the bottom third, a Retention Factor of 1 will be assigned. 2) Net Preferred Customer Growth: Calculated by taking the greater of the average organization net Preferred Customer (PC) growth for the previous three months or the current month s PC growth divided by three (excluding roll-ups) up to a maximum of 200. Participants in the Director and Senior Director pools must have PC growth to participate in the pools. Executive and Corporate Directors can participate in the Leadership Pool without Preferred Customer growth, but will be automatically assigned a Status Factor (SF) of 2.0. Formula Components *Up to 200 in any given month 3) Commission Rate Status Factor: Director III Sr. Director VII Director IV Sr. Director VIII Director V Sr. Director IX Director VI Exec. Director Director VII Exec. Director II Director VIII Exec. Director III Director IX Exec. Director IV Sr. Director Exec. Director V Sr. Director II Exec. Director VI Sr. Director III Exec. Director VII Sr. Director IV Exec. Director VIII Sr. Director V Exec. Director IX Sr. Director VI Corporate Director ) Average Leadership Points: Any Marketing Executive who earns a 3-month average of Leadership Points in the applicable month will receive two times the Leadership Point credit for that month. Leadership Points earned from the Marketing Executive s personal enrollments are limited to 40 for the pool formula in the pool calculation. 48 Building Your Melaleuca Business 49

26 Additional Leadership Bonus Information This section outlines the leadership bonus opportunities and requirements for Commission Rate Directors III and above, Senior Directors, Executive Directors, and Corporate Directors. These bonuses are designed to reward leaders who are creating growth within their organization and who continue to help others reach their goals. Leadership Points Required for Leaders Directors or above who have achieved 20,000 or more Organization Product Points are required to produce an average of 10 Leadership Points per month. Directors or above with an Organization Product Point Volume of 50,000 or more will be required to produce an average of 15 Leadership Points per month in order to receive all of the Organization Commission available to them. Those producing fewer Leadership Points will receive a percentage of the total commission available. Directors or above with an Organization Product Points greater than 20,000 but with a PEG Volume less than their Organization Volume may receive an Organization Commission of up to 10% of their PEG Volume. Leadership Pool Information & Details Commission Rate Directors III through Corporate Directors can participate in exclusive leadership pools. The leadership pools are designed to reward those leaders who provide an ongoing contribution to their organization by creating growth and helping others reach their goals. Commission Rate Directors III through IX can participate in the Directors' Leadership Pool up to a monthly amount equal to the status caps in place for their status organization commission or up to 90% of what they would make as a Senior Director in the Senior Director Leadership Pool, whichever is less. Directors III through IX must have a rolling three-month average of five Leadership Points to participate in the pool. If the rolling three-month average of Leadership Points is less than 15, participants may earn up to a maximum of S$750 / RM1,500 in the Leadership Pool. The Top 30 pool point earners will participate in an additional pool bonus. To be eligible for the Top 30 bonus, Directors must have a three-month average of at least 15 Leadership Points and average Preferred Customer growth of at least 20. In calculating the average net Preferred Customer growth, Directors III through IX are limited to 200 in any given month. Senior Directors through Senior Directors IX may earn up to S$6,000 / RM12,000 or 7% of their PEG volume, whichever is greater (not to exceed S$15,000 / RM35,000) from the Senior Director Leadership Pool. Senior Directors may earn up to the maximum of 90% of what they would make as an Executive Director in the Executive Director pools. New Senior Directors will, in the third consecutive month as a new Senior Director, receive double their normal status factor for that month. In that month they may earn up to S$14,000 / RM30,000 or 7% of their PEG volume, whichever is greater (not to exceed S$15,000 / RM35,000). The Top 20 pool point earners will participate in an additional pool bonus. To be eligible for the Top 20 bonus, Senior Directors must have a three-month average of at least 40 Leadership Points and average Preferred Customer growth of at least 20. In calculating the average net Preferred Customer growth, Senior Directors through Senior Directors IX are limited to 200 in any given month. Top pool point earners in the Director pools may not have been Commission Rate Senior Directors previously. Top pool point earners in the Senior Director pools may not have been Commission Rate Executive Directors previously. To participate in the top pool portion of any Leadership Pool, Directors III and above must have a minimum three-month average net Preferred Customer growth in their organization of 20 or more Preferred Customers. Executive and Corporate Directors may earn 14% of their PEG volume or S$30,000 / RM60,000, whichever is less, from the Executive Director Pools. The top three producers of points in the Executive Director pool may earn up to 14% of their PEG volume or S$60,000 / RM120,000, whichever is less. The Top 10 pool point earners will participate in an additional pool bonus. To be eligible for the Top 10 bonus, Executive Directors must have a three-month average of at least 40 Leadership Points and average Preferred Customer growth of at least 20. Leadership Growth Bonus Commission Rate Senior Directors and above can receive a minimum payout in the Leadership Pools. When a Senior Director or above develops a new first-time Director in the month, they receive a minimum of S$300 / RM600 to be paid out of the Leadership Pool for each new Director. This Personally Enrolled Director must be from the Marketing Executive s home country group to qualify for this bonus. For example, if you develop 2 new directors, you would be guaranteed a minimum payout of S$600 / RM1,200 from the Leadership Pools for that month. One-third of the bonus may be earned in months in which the leader has growth in the current month, but has no growth over the rolling threemonth average. Additional Ways to Earn Leadership Points In addition to enrollments and presentations, leaders can also earn Leadership Points as follows: 1. Directors and above will earn 10 points for each new Personal Director they develop in any given month (when the Director is not a Pacesetter Director). 2. Directors and above will earn 15 Leadership Points for each new Personal Pacesetter Director. 3. Directors II and above earn 10 Leadership Points for each Personal Enrollee who advances to a status of Director II through Senior Director in the month following the month of advancement. Please note: the advancement does not need to be a Pacesetter advancement, but the leader receiving the Leadership Points needs to have a status equal to or greater than the advancing Personal Enrollee up to but not past Senior Director. Executive Director Credits To advance beyond Corporate Director Status, a Corporate Director must maintain the minimum qualifications for Corporate Director, which are: at least 10 personally enrolled Directors (five of which need to be Executive Directors), achieve minimum Organization & PEG Volume equal to the status they are trying to achieve, and achieve the Personally Enrolled Executive or Corporate Director credits. Executive or Corporate Director credits are calculated each month based on the Commission Rate of your personally enrolled Executive or Corporate Directors as follows: Status Credit Status Credit Executive Director 1.1 Executive Director VI 1.6 Executive Director II 1.2 Executive Director VII 1.7 Executive Director III 1.3 Executive Director VIII 1.8 Executive Director IV 1.4 Executive Director IX 1.9 Executive Director V 1.5 Corporate Directors 2.0 Corporate Directors Leadership Growth Bonuses A first-time Corporate Director who advances due to volume status will not receive the S$150,000 / RM300,000 one-time advancement bonus or the Corporate Director Leadership Growth bonuses until they have 5 Commission Rate Executive Directors for three consecutive months. They can earn the one-time 10% PEG advancement bonus once they hold Corporate Director status for three consecutive months. Corporate Directors who advance to Corporate Director II through Corporate Director IX will be paid this one-time 10% PEG advancement bonus as follows: 1/3 in the month of advancement and 1/3 in each of the two subsequent months in which the meet the requirements for the new status. 50 Building Your Melaleuca Business 51

27 Melaleuca presents 2013 ANNUAL 12% business builder status Developmental Status Only 1 out of 9 customers (12%) will decide to start their own Melaleuca business and eventually achieve Director status or above. Directors have made a substantial effort (probably spent at least 50 hours) in developing at least eight Melaleuca customers. Those estimated 50 hours could have been spent in a single week or could have been spent over several years. But at some point in their lives, Directors have invested enough time to develop (and maintain) at least eight Melaleuca customers. INCOME STATISTICS annual income personal customers total active customers high low average minimum average minimum average time to achieve status 1 S$46,164/ S$275/ S$3,159/ DIRECTOR 1 / 2 (85.5%) RM98,483 RM586 RM6, Mo. 120 Mo. 6 Mo. shortest longest average Initial Leadership Status 64% customers 24% customer referral status Leaders at these statuses have made a more serious effort at building a Melaleuca business. Those who have reached these leadership statuses have not only invested enough time to refer several customers, but they have also helped some of those customers start a business and become Marketing Executives. Those Marketing Executives have, in turn, referred additional customers who purchase Melaleuca products each month. Commissions are paid based on the development of customers and the development of leaders who help others reach their goals. annual income personal customers total active customers time to achieve status 1 high low average minimum average minimum average shortest longest average DIRECTOR 3 (5.7%) DIRECTOR 4 / 5 (2.8%) S$49,139/ RM104,829 S$55,376/ RM118,134 S$4,170/ RM8,896 S$7,944/ RM16,947 S$11,846/ RM25,270 S$19,673/ RM41, Mo. 120 Mo. 12 Mo Mo. 120 Mo. 17 Mo. Customers The majority (64%) of those who buy Melaleuca products each month are strictly customers. They re not interested in pursuing the Melaleuca financial opportunity. They just love Melaleuca products. Only a few of them will ever decide to build a Melaleuca business. 10.8% marketing executive % marketing executive % marketing executive percent at this status MARKETING EXECUTIVE MARKETING EXECUTIVE 2 Customer Referrals Status 24% of all Melaleuca customers have referred at least one customer but fewer than eight customers. As those customers purchase products directly from Melaleuca, those who referred them receive a small commission. These households are not necessarily interested in the financial opportunity. Their relationship with Melaleuca is primarily because they love Melaleuca products. Their status is determined by how many customers they have referred. A Marketing Executive 1 has at least one customer. A Marketing Executive 2 has referred at least two customers and a Marketing Executive 3 has referred at least four customers. While these individuals may not be considered serious business builders, their customers (like the vast majority of Melaleuca customers) come from word-of-mouth referrals. Therefore, the overall contribution of these individuals is significant. annual income personal customers total active customers time to achieve status high low average minimum average minimum average shortest longest average 1 S$4,278/ RM9,126 S$5,132/ RM10,947 S$36/ RM77 S$36/ RM77 S$131/ RM278 S$356/ RM Mo. 120 Mo. 4 Mo Mo. 120 Mo. 5 Mo. DIRECTOR 6 / 7 (1.2%) DIRECTOR 8 / 9 (0.7%) Advanced Leadership Status Those Marketing Executives who reach Senior or Executive Director status have shown substantial interest and dedication in building a Melaleuca business. While they may not work their business full-time, it is essential that they invest some time each month nurturing, training, and helping those in their marketing organization. Melaleuca advocates that Marketing Executives keep their full-time job and work their Melaleuca business in their spare time. However, some Executive Directors at the higher income levels do work their business close to full-time. Melaleuca strongly advocates that Marketing Executives do not quit their full-time job until their Melaleuca income far surpasses the income they receive from their full-time employer. Rather, they should add their Melaleuca income to their regular income, thereby making a substantial difference in their family finances. SENIOR DIRECTOR (2.6%) 2 EXECUTIVE DIRECTOR (1.4%) 3 CORPORATE DIRECTOR (LESS THAN 0.1%) 4 S$86,168/ RM183,824 S$115,271/ RM245,910 annual income personal customers high low average minimum average minimum average S$504,722/ RM1,076,739 S$945,683/ RM2,017,456 S$3,550,053/ RM7,573,446 S$14,930/ RM31,850 S$21,845/ RM46,602 S$37,629/ RM80,275 S$94,425/ RM201,440 S$1,063,968/ RM2,269,798 S$31,116/ RM66,381 S$43,862/ RM93,571 S$91,935/ RM196,128 S$235,251/ RM501,869 S$1,740,101/ RM3,712,214 1 Mo. 1 Mo. 120 Mo. 120 Mo. 21 Mo. 28 Mo. total active customers time to achieve status 1 shortest longest average ,108 1 Mo. 120 Mo. 21 Mo ,072 2,830 4 Mo. 120 Mo. 31 Mo ,389 13, Mo. 120 Mo. 74 Mo. 5 MARKETING EXECUTIVE 3 S$9,563/ RM20,400 S$41/ RM86 S$825/ RM1, Mo. 120 Mo. 5 Mo. The above annual income statistics include all North American Melaleuca Marketing Executives who were active during all 12 months of the period ending December 2013 and performed the minimum activity required at each status. The incomes stated include all commissions and bonuses actually paid during the period. For the purpose of these statistics, a Marketing Executive s leadership or developmental status was calculated by taking the highest status achieved and maintained for at least seven consecutive months. The information on this page is not necessarily representative of what any individual Marketing Executive will earn with this program. Any representation or guarantee of specific earnings would be misleading. Success with any business takes hard work, diligence, perseverance, and leadership. Success with Melaleuca will depend on how effectively a Marketing Executive exercises those qualities. 1 Includes all active Marketing Executives joining Melaleuca within the past 10 years. 2 Includes statistics for Senior Director 1 through Senior Director 9. 4 Includes statistics for Corporate Director 1 and higher. 5 Corporate Director average time includes all Corporate Directors in the statistics. 3 Includes statistics for Executive Director 1 through Executive Director Building Your Melaleuca Business 53

28 Celebration Online Enrollment Center You work hard to achieve your goals and each new status we believe it s important to recognize your efforts and achievements. Each new status you achieve will be recognized by a Certificate of Achievement and each new status above Director will also be recognized with a gold pin. There is also special recognition you may earn at any time in your Melaleuca career: Circle of Influence, Expanded Circle of Influence, and 20/20 Club. As well as pins and certificates to celebrate achievements, we announce advancements in our Leadership in Action magazine. Advancements of Director and above are announced with your photograph, so don t forget to provide us with a photo so that we may share your success with other Melaleuca Marketing Executives. MONTHLY RECOGNITION Enrolling customers is the lifeblood of your Melaleuca business, and that s why Melaleuca has an ongoing program to reward those dedicated Marketing Executives who enroll four or more Preferred Customers in any calendar month. Because Melaleuca s products are exceptional products at reasonable prices, and are used by most people on a daily basis, it s natural to share them with friends and family. By introducing those in your Circle of Influence to the Preferred Customer Program, they can shop directly from the company at our discounted Preferred Customer prices. In addition, you earn commissions, awards and much deserved recognition in a company-wide publication. Circle of Influence To Qualify: Enroll four new Preferred Customers in any one calendar month. You can qualify as often as you wish. Plus, receive a uniquely designed Circle of Influence lapel pin indicating the number of times you have achieved this award. Plus, your name will be published in Leadership in Action. OTHER ELITE AWARDS A number of other achievements are recognized by Melaleuca for monthly promotions, Fast Track competitions, and special Convention awards. For example, the prestigious Half-Century/ Century Awards are presented to those Marketing Executives who have at least 50 and 100 active personally enrolled customers respectively. Complete new customer enrollments online. Melaleuca provides you with all the online tools you need to make getting your new customers enrolled fast and easy. Enter all your new customers information Monitor the status of their enrollment Make changes if needed Schedule follow-up Review any faxes you have sent to us Melaleuca is committed to making the process of enrolling new customers as simple as possible. Complete your online enrollments in just 6 simple steps! So when you re ready to enroll your customers, be sure to try the Online Enrollment Center. Get started by going to the Business Center and then click on the enrollment center. Expanded Circle of Influence To Qualify: Enroll eight new Preferred Customers in any one calendar month. Receive an Expanded Circle of Influence lapel pin with a larger inner circle indicating the number of times you have achieved this award. Plus, both your name and color picture will be featured in Leadership in Action. Millie Evans, a Senior Director III from Hawaii, USA, burns her mortgage and receives her Total Financial Freedom Award. 20/20 Club To Qualify: Develop 20 personally enrolled Preferred Customers. Receive a unique 20/20 Club lapel pin and recognition of your achievement will be published in the Leadership in Action. Using Melaleuca's Online Enrollment tool saves me time and makes the process simple and fast. Michelle Smith, Corporate Director II, Colorado, USA NOTE: If you have received signed paperwork from the customer, click the Enter Paperwork button. The process for entering paperwork and entering an online enrollment are similar, however when you enter paperwork, you will have a Submit Enrollment Information button on the summary screen and your new customer will not be sent a request for an electronic signature. You will also need to mail or fax in the original paperwork. For more information regarding the Online Enrollment Center, please visit the website. 54 Building Your Melaleuca Business 55

29 Frequently Asked Questions Melaleuca s Business Development Department has compiled answers to the questions most frequently asked by customers. Talk to your enroller or call Business Development at (Malaysia)/ (Singapore) for answers to other questions you may have. Enrolling Preferred Customer How do I enroll a new customer? Fill out the Customer Membership Agreement completely, including correct numbers, shipping and mailing addresses, and phone numbers. Include account information and the required signatures, then mail the completed paperwork to Melaleuca. You can also enroll customers online at (Singapore) (Malaysia) What is the best way to confirm that my customer s paperwork has been received? Fax the completed paperwork to (Malaysia only) or (Singapore only). Is it possible for someone else to be set up on my credit card or GIRO (Singapore only) as a Preferred Customer? No. Each customer or Marketing Executive must have an account of which he or she is the owner and is authorized to withdraw funds. Using your own GIRO (Singapore only), or credit card to enroll someone may be cause for termination. If I do not have a credit card, GIRO (Singapore only), can I enroll as a Preferred Customer? No. Either a credit card, GIRO (Singapore only) is necessary. I want my new customers to receive the Preferred Customer discount. Can they shop if their paperwork has not yet been received by Melaleuca? They can place an order with a credit card or simply walk in to showroom and purchase with cash. We give all customers the Preferred Customer price on their first order. Building Your Organization How do I place new Personal Customers in my organization? You are allowed to manage five customers or Marketing Executives on your first generation. You can place customers in those positions or in the organizations of customers in your organization. We do not tell you how to structure your organization; we recommend discussing all business-building strategies with your Enroller and support team. Whom is my Marketing Executive? The first person in your support team. Your Marketing Executive and your Enroller are your primary resources in building your business. Whom do I put down as Enroller on the Customer Membership Agreement? The Enroller must be the person who introduced the new Customer to Melaleuca and helped him/her become a Customer or who played an active role in the presentation of Melaleuca products or business opportunity to the new Customer. May I have an interest in more than one Melaleuca business? No. You may only have ownership or ownership affiliation in one Independent Melaleuca Business. Changes in Your Business How do I change the Preferred Customer information on my agreement form? With a simple call to Business Development at (Malaysia) / (Singapore). Some items do require the submission of a new Customer Membership Agreement form. A Business Development Specialist can give you greater detail at the time of your call. Can I move a new personal enrollee? Yes. An Enroller can move a personal enrollee to a different position within the month of enrollment by going online to http.sg.melaleuca.com (Singapore) / http.malaysia.melaleuca. com (Malaysia) and clicking on the New Enrollee Change (NEC) tool. This online tool will allow Enrollers to move a customer during the customer's month of enrollment. An Enroller also can move a personal enrollee within his/her business organization up to two months following the month of enrollment by using the New Enrollee Change online tool. After the month of enrollment, customers can only be moved onetime. Every business or customer below the customer or Marketing Executive being moved will follow the enrollee. The requested move is limited to 20 customers. There is a S$15 / RM21 fee for each customer or Marketing Executive moved in the organization. May I move someone within my organization? Melaleuca discourages organization changes. Melaleuca will review organization change requests with written consent of all seven support team members above the customer or Marketing Executive who would like to be moved. An Organization Change Form with original signatures is required. Both the person being moved and the Enroller need to sign the form. There is a fee of S$70 / RM106 for the original move and S$20/ RM42 or RM21 for any related moves. An Organization Change Form must be completed for each person being moved. To have changes done for S$20/ RM42 or RM21, all related forms must arrive together. We suggest you work closely with your enroller and/ or support team when undertaking this type of request for change. (Statement of Policies, #19, Transfer from Original Organization. ) What happens to the structure of my organization if a customer is not active? A customer is inactive if she did not purchase a minimum of 29 Product Points. If a customer goes inactive for two consecutive months, she automatically loses her position in the organization. Refer to the Statement of Policy #39 Roll-Up Policy for further clarification. A Marketing Executive in my organization has not personally produced the required Product Points for the past two months. Is there any way to keep him from losing his marketing organization? Two months without producing their Product Point minimum means automatic loss of their marketing organization. What will happen to a customer who was inactive for two consecutive months and places an order for 29 Product Points in the third month? Because he purchased in the third month, he will reactivate back into the original organization in the first available position under his original Enroller. Someone in my organization discontinued his Preferred Customer Membership. Can he still purchase products? He can still purchase directly from the company as a Direct Customer and have his products delivered to him. Direct Customers pay the regular price instead of the 30% to 40% discounted Preferred Customer price. Direct Customers will not maintain an organizational spot in your marketing organization unless they produce the minimum Product Point requirement. Is my Melaleuca business inheritable? Yes, you can will your business (see Policy #17). These transfers must be approved by Melaleuca. Monthly Business Reports For what time period are commission and bonus payments paid? Commissions and bonuses are calculated on product sales from the first through the last day of the calendar month. Who receives a Monthly Business Report? All Marketing Executives who have at least one active customer and have earned a commission and bonus payments will receive a Monthly Business Report Summary and access to a complete online report that details the activity within their organization. This is an extremely valuable document for building and reviewing business activity. When do I receive my Monthly Business Report? Monthly Business Reports are mailed on the 15th of each month (if the 15th falls on a weekend or holiday, the Business Reports, commission and bonus payments are mailed the following business day) If you have not received your Business Report after ten business days, call Business Development at (Malaysia)/ (Singapore). Will I receive a Monthly Business Report every month? If you do not earn a commission in a given month, you will not receive a report. 56 Building Your Melaleuca Business 57

30 Statement of Policies Capitalized terms used in the Statement of Policies have the meanings set forth in the Definitions of Terms. 1. Becoming a Customer To become a Customer, a person must: (a) have an Enroller who has submitted an Independent Marketing Executive Agreement; (b) sign and submit a Customer Membership Agreement, marking either the Direct Customer or Preferred Customer box; and (c) pay a membership fee for the cost of enrollment, product information, and other literature that Customers receive throughout the year. Preferred Customers receive a number of additional benefits and may purchase products directly from Melaleuca at 30% to 40% below the Regular Price. In return for this added discount, Preferred Customers agree to purchase Melaleuca products totaling at least 35 Product Points each month. Customers are not authorized to market or resell Melaleuca products unless they have also signed and submitted an Independent Marketing Executive Agreement. 2. Becoming a Marketing Executive To become a Marketing Executive, a person must first (a) have an Enroller who has submitted an Independent Marketing Executive Agreement; (b) sign and submit an Independent Marketing Executive Agreement; and (c) purchase a Membership Kit. Once those steps are completed the applicant is authorized to market and resell Melaleuca products and to enroll Customers and Marketing Executives. However, an applicant does not become a Marketing Executive, until: (i) Melaleuca receives the applicant s Independent Marketing Executive Agreement; (ii) the applicant has a Customer or Marketing Executive in his/her Marketing Organization; and (iii) the applicant receives his/her first commission check. Marketing Executives may purchase products directly from Melaleuca at the Direct Customer price. Marketing Executives may also choose to be Preferred Customers, in which case they may purchase products directly from Melaleuca at the Preferred Customer price. 3. Individuals, Corporations, Tax Exempt Entities and Trusts Melaleuca will only consider for acceptance as Marketing Executives individuals or entities that fall into one of the following categories: (a) Individuals who are of the legal age. (b) Married couples of which at least one is of legal age. (c) Corporations in good standing in the state, province, or country of their incorporation which have as their sole shareholder(s), director(s) and officer(s) either one unmarried individual or a married couple. (d) Tax exempt entities which are registered and approved as tax exempt institutions under the Income Tax Act of the Republic of Singapore / Malaysia. (e) Trusts established in accordance with Melaleuca guidelines. (f) Charitable giving corporations established in accordance with Melaleuca guidelines. 4. Customer Numbers Customers and Marketing Executives may not use or submit to Melaleuca any government issued identification number other than the actual number assigned to the Customer or Marketing Executive by the proper government authority. 5. Proper Completion of Documents All agreements must be completely and properly filled out and signed; together with a photocopy of the Singapore/Malaysia National Registration Identity Card, or Singapore/Malaysia Permanent Resident Identity Card or any legal documents verified by Melaleuca to confirm residential status. No copies or alterations will be accepted. If any agreement is altered in any way the agreement will not be deemed accepted by Melaleuca except in its original unaltered form, regardless of passage of time or payment of commissions by Melaleuca. Melaleuca will not be responsible for loss of commissions or bonuses or for delays in Customer or Marketing Executive registrations or orders due to: (a) errors by Customers or Marketing Executives in preparing or sending agreements, orders or other documents; (b) delays or errors caused by the mail or fax transmission; (c) nonreceipt of documents by Melaleuca; (d) illegible or incomplete information on agreements, orders or other documents; or (e) the inability of Customers or Marketing Executives to reach Melaleuca by telephone or fax during busy calling periods. Melaleuca will process and credit orders and enrollments in the calendar month in which they are received by Melaleuca. 6. Ordering Melaleuca encourages Customers to order early in the month. All orders are credited to the calendar month in which they are received by Melaleuca. For purposes of product orders, the calendar month ends on the last day of the month and begins on the first day of the month. Orders may be placed by telephone, mail, fax or the Internet. All telephone or fax orders must be paid by Visa, MasterCard, DebitCard and Interbank Giro (Singapore only). Orders by mail may be paid by Visa, MasterCard, DebitCard and Interbank Giro (Singapore only). When paying with a credit card, the card number and expiration date must be included. Orders for products will usually be processed by Melaleuca within 48 hours of receipt. Shipment will be by common carrier and delivery should be expected within three (3) to five (5) working days (for Singapore) and three (3) to seven (7) working days (for Malaysia). Orders placed during the last week of the month may be delayed due to the large volume of orders received at the end of the month. 7. Customer Satisfaction Guarantee If for any reason any Customer is not completely satisfied with any product purchased by such Customer from Melaleuca, the Customer may return the unused portion of the product together with a copy of the purchase receipt to Melaleuca within 60 days of the date of purchase and Melaleuca will (1) credit the Customer s account for the total purchase price of the product (less shipping and handling charges), or (2) upon the Customer s written request, replace the product without charge, or (3) upon the Customer s written request, refund the total purchase price of the product (less shipping and handling charges). Refunds, when requested, will be issued to the original method of payment used to purchase the product unless that method of payment is unavailable in which case a refund check will be issued to the Customer. Unless the Customer requests otherwise, Melaleuca will credit the Customer s Melaleuca account for the purchase price of the returned product. Credit on account is available for Melaleuca product purchases. If a Customer has unredeemed credit on account, Melaleuca may make efforts to locate the Customer and advise him/her in writing of the credit. Melaleuca may continue to make such attempts on a monthly basis and will charge the Customer s account a S$14 / RM26.50 service fee for each month s notification process for as long as the Customer has a credit on account, unless otherwise restricted or prohibited by law. Refund checks that remain uncashed for more than 180 days will not be honored and the amount of the check, less a processing fee of S$14 / RM26.50 and a bank cancellation/stop payment fee of S$14 / RM26.50, will be credited to the Customer s account, which credit on account shall be subject to the above notification process and associated service fees and applicable law. Melaleuca reserves the right to cancel the Customer Agreement of any Customer who abuses the Melaleuca satisfaction guarantee by excessively returning product. 8. Returns and Product Point Adjustments Essentials/Value Pack Returns: Individual products that are purchased as part of a Essentials/Value, or other special pack which is priced below the Preferred Customer price, can be returned for an exchange but not for a refund unless the entire pack is returned. Essentials and Value Pack commissions will be deducted from the Marketing Executive s check in the month the Essentials or Value Pack is returned by the Customer. Marketing Executives receive commissions based on actual sales of product to End Consumers. When product is returned to Melaleuca, the commissions attributable to that product will be deducted from the commission checks of the Customer s Support Team in the month that the return occurs. If the return occurs within 6 months of the purchase date, then commissions will be deducted from the commission checks of the Support Team of the Marketing Organization that existed at the time of the purchase. Otherwise, commissions will be deducted from the commission checks of the Support Team of the current Marketing Organization. Melaleuca reserves the right to terminate the Independent Marketing Executive Agreement or cancel the Customer Membership Agreement of any Marketing Executive or Customer who abuses the Melaleuca Satisfaction Guarantee and Return Policy by excessively returning products. 9. Membership Kit Refund When a Marketing Executive applicant enrolls and purchases a Membership Kit, the Membership Kit number will be registered at Melaleuca in the applicant s name. If a Marketing Executive applicant cancels his/her Independent Marketing Executive Agreement and returns his/ her purchased Membership Kit to Melaleuca within 60 days after the Marketing Executive applicant s date of enrollment, Melaleuca will give such Marketing Executive applicant a full refund for the cost of the Membership Kit. A refund will only be sent to the Marketing Executive applicant in whose name the Membership Kit number is registered. This policy will apply whether the Marketing Executive applicant purchases the Membership Kit directly from Melaleuca or from his/her Enroller. A Marketing Executive who purchases Membership Kits for resale to Marketing Executive applicants may return unsold kits to Melaleuca for a refund only if the Marketing Executive cancels his/her Independent Marketing Executive Agreement and returns the Membership Kits within 60 days after their date of purchase. Marketing Executives who purchase Membership Kits for resale may resell such kits for up to one year from their date of purchase from Melaleuca. Melaleuca encourages Marketing Executives to keep such Membership Kits updated until they are sold. A Membership Kit may only be sold once. Melaleuca updates and revises Membership Kits from time to time. Marketing Executives are encouraged to keep their Membership Kits current by purchasing update packets or new Membership Kits as they become available. Outdated or old Membership Kits may not be exchanged for current Membership Kits. 10. Election to Cancel Agreements A Marketing Executive may suspend/cancel his/ her Independent Marketing Executive Agreement, and a Customer may suspend/cancel his/her Customer Membership Agreement, for any reason at any time by sending a completed Melaleuca Suspend My Preferred Customer Benefits Form or by giving written notice to Melaleuca bearing his/her original signature, printed name, address, Customer Number and reason for canceling (to assist Melaleuca in improving its customer service). A Melaleuca suspension form will help insure the accurate information necessary to process the cancellation is submitted. If an individual or entity is a Preferred Customer and a Marketing Executive, the notice should specify which agreement(s) should be suspended. Suspensions received by Melaleuca on before the 25th of the month will be effective the month received. Written suspensions received by Melaleuca after or the 25th of the month will be effective the following month. Suspension notices must be mailed to: Melaleuca Southeast Asia (Malaysia) Sdn Bhd Unit B-10-3A & 5, Level 10, Menara UOA Bangsar, No. 5, Jalan Bangsar Utama 1, Kuala Lumpur, Malaysia (for Malaysia) Melaleuca Southeast Asia (Singapore) Pte Ltd 150 Changi Road, #01-01 Guthrie Building, Singapore (for Singapore) 11. Cancellation Refund Policy Melaleuca will repurchase from Marketing Executives who have canceled their Independent Marketing Executive Agreements all unencumbered products which are in resalable condition which were purchased by the Marketing Executive from Melaleuca within the previous 60days, at a price of not less than ninety percent (90%) of the original net cost to the Marketing Executive. All products or materials must be returned to Melaleuca with shipping prepaid by the Marketing Executive in order to receive the above refund. Melaleuca will charge back all commissions, bonuses and rebates paid by Melaleuca relating to the purchases of those products. 12. Updates of Personal Information It is the interest of both Customers and Marketing Executives to notify and update Melaleuca of any changes to personal information. 13. Errors or Questions Marketing Executives should notify Melaleuca immediately of any errors or questions about commissions, bonuses, Monthly Business Reports, orders or charges. Melaleuca will correct any errors reported to it within 60 days, but Melaleuca will not be responsible for any errors, omissions or problems not reported within 60 days. 14. Joint Ownership of a Business Independent Melaleuca Businesses may only be owned by an individual or a married couple, or by corporations, tax exempt entities or trusts that comply with Melaleuca guidelines. If a couple who jointly own an Independent Melaleuca Business divorce, they may apply to have the Independent Melaleuca Business transferred to one of them as the sole owner. The divorced couple must submit to Melaleuca a written request specifying to which person the Independent Melaleuca Business will be transferred. The request must either contain the notarized signature of both parties or contain the notarized signature of at least one party and include a certified copy of the court approved divorce decree or property settlement that designates to which party the Independent Melaleuca Business should be transferred. Melaleuca is not bound by any such request or court decree and retains the right to approve or disapprove of such transfer request at its sole discretion. If the transfer is approved, the person to whom the Independent Melaleuca Business is being transferred must sign and submit to Melaleuca a new Independent Marketing Executive Agreement. 15. One Business per Person or Couple A Marketing Executive may not own, operate or have a financial interest in more than one Independent Melaleuca Business without Melaleuca s express written approval. With regard to married couples and non-married cohabiting couples, both persons will be treated as a single Marketing Executive for purposes of Melaleuca s policies. Therefore, for example, if one person owns an Independent Melaleuca Business, the other person may not own, operate or have a financial interest in a separate Independent Melaleuca Business. Additionally, if the couple jointly owns an Independent Melaleuca Business, neither person may own, operate or have a financial interest in a separate Independent Melaleuca Business. However, if two people who own separate Independent Melaleuca Businesses marry, they may each retain ownership of their businesses. 16. Conduct of Household Members If any member of the Marketing Executive s Immediate Household engages in any activity which, if performed by the Marketing Executive, would violate any Melaleuca policy or any provision of the Independent Marketing Executive Agreement, such activity will be deemed a violation by the Marketing Executive. 17. Inheritance of Business An Independent Melaleuca Business may be inherited by a single person, a married couple or a trust which complies with Melaleuca s guidelines, pursuant to a valid will or other appropriate document, or in accordance with the intestacy laws of the state, province, or country in which the Marketing Executive resides. A person who inherits an Independent Melaleuca Business must furnish Melaleuca with proper documentation that he/she is the beneficiary and is authorized to represent the estate. He/she must also execute a Customer Membership Agreement and an Independent Marketing Executive Agreement, fulfill all of the functions of a Marketing Executive and abide by the terms of Melaleuca s Statement of Policies. 18. Sale or Transfer of Business Before a Marketing Executive can sell or transfer his/her Independent Melaleuca Business (except for transfers by inheritance pursuant to Policy 17) all of the following requirements must be met: (a) The transfer must be approved in writing by Melaleuca as being in the best interest of all parties involved, including the transferor, the transferee, Melaleuca and the members of the Marketing Organization of the transferor. (b) The transfer must not constitute the purchase of status or position by the transferee. The Marketing Executive s actual status must equal the potential status which the Marketing Executive could attain based on his/her Organization Product Points at the time of the transfer and for a reasonable period prior to the transfer, and the transferor Marketing Executive must have been the actual Enroller of all Personal Enrollees and must have been actively involved in working with his/her personal directors. Marketing Executives may not contract or agree with or allow another person to work their Independent Melaleuca Business to bring it up to its potential status or offer to sell their business to another person on the condition that such person bring the business up to its potential status. (c) Completed original signed and notarized Organization Sale Request and Organization Purchase Request forms must be submitted to and accepted by Melaleuca. (d) The transferee of the business must have completed and submitted to Melaleuca an Independent Marketing Executive Agreement. (e) The transferee of the business has undergone, or will agree to undergo, such training and orientation as Melaleuca may require commensurate with the size of the business being purchased. (f) The transferor Marketing Executive and the Independent Melaleuca Business must have been in compliance with all of Melaleuca s policies and the terms of the Independent Marketing Executive Agreement for the entire twelve month period preceding the transfer including the month in which the transfer occurs. 58 Building Your Melaleuca Business 59

31 (g) Independent Melaleuca businesses that have or have had a total group volume of 5,000 Product Points or more may not be transferred to any other party as any such transfer would constitute the purchase of status or position. 19. Transfer from Original Organization Marketing Executives and Customers may transfer from one Melaleuca organization to another only upon fulfillment of all of the following requirements: (a) The Marketing Executive or Customer seeking the organization change has submitted an Organization Change form with the original signatures of the Support Team Marketing Executives in the immediate seven generations above the Marketing Executive or Customer who have earned at least two Leadership Points over the previous six months; (b) A Marketing Executive seeking the organization change has no more than 10 Customers in his/her existing Marketing Organization and will have no more than 10 Customers in the Marketing Organization into which he/she is seeking to be moved; (c) The Marketing Executive or Customer seeking the organization change has paid to Melaleuca the applicable fee charged by Melaleuca for organization changes; (d) Melaleuca has approved the change in writing, which approval Melaleuca may withhold in its sole discretion. 20. Non-Solicitation and Conflicts of Interest Marketing Executives are independent contractors and may be active in other business ventures while they are Marketing Executives for Melaleuca. However, to qualify for compensation under Melaleuca s Compensation Plan, Marketing Executives have the ongoing responsibility to service, supervise, motivate, train and assist the Marketing Executives in their Marketing Organizations. They also have the responsibility to promote Melaleuca products and the Melaleuca income opportunity. Melaleuca and its Marketing Executives have made a great investment in the establishment of organizations consisting of Customers and Marketing Executives. This constitutes one of Melaleuca s most valuable assets. Melaleuca reserves the right to cease paying compensation to any Marketing Executive who recruits any Melaleuca Customer or Marketing Executive to participate in another business venture. In order to protect the efforts of all Marketing Executives in building and maintaining their individual Marketing Organizations and Customer bases, and in order to protect Melaleuca s interest in the overall Customer base, Marketing Executives and all members of their Immediate Household are required to abide by the following policies: (a) Non-Solicitation of Melaleuca Customers and Marketing Executives: (i) During the period that their Independent Marketing Executive Agreements are in force Marketing Executives and all members of their Immediate Household are prohibited from directly, indirectly or through a third party recruiting any Melaleuca Customers or Marketing Executives to participate in any other business venture. (ii) For a period of twelve months after cancellation or termination for any reason of a Marketing Executive s Independent Marketing Executive Agreement, the Marketing Executive and all members of his or her Immediate Household are prohibited from directly, indirectly or through a third party recruiting to participate in any other business venture any Melaleuca Customers or Marketing Executives: (1) who were in the Marketing Executive s Marketing Organization or Support Team at any time during the term of his or her association with Melaleuca; (2) with whom the Marketing Executive had contact during the term of his or her association with Melaleuca; (3) whose contact information (name, address, phone number or address, etc.) the Marketing Executive or members of his or her Immediate Household has obtained at any time during the term of his or her association with Melaleuca; or (4) whose contact information (name, address, phone number or address, etc.) the Marketing Executive or members of his or her Immediate Household obtained at any time from another person who obtained the information because of any other person s association with Melaleuca. The prohibitions under clauses (a)(i) and (ii) above include but are not limited to, presenting or assisting in the presentation of other business ventures to any Melaleuca Customer or Marketing Executive or implicitly or explicitly encouraging any Melaleuca Customer or Marketing Executive to join any other business ventures. It is a violation of this policy to recruit a Melaleuca Customer or Marketing Executive to participate in another business venture even if the Marketing Executive does not know that the prospect is also a Melaleuca Customer or Marketing Executive. It is the Marketing Executive s responsibility to first determine whether the prospect is a Melaleuca Customer or Marketing Executive before recruiting the prospect to participate in another business venture. (Please refer specifically to the definition of recruit in the Definitions of Terms at the end of these Policies.) (b) During the period that their Independent Marketing Executive Agreements are in force, and for a period of twelve months after the cancellation or termination thereof for any reason, Marketing Executives and all members of their Immediate Household are further prohibited from the following: (i) Producing any literature, tapes or promotional material of any nature (including but not limited to websites and s) which is used by the Marketing Executive or any third person to recruit Melaleuca Customers or Marketing Executives to participate in another business venture; (ii) Selling, offering to sell, or promoting any competing products or services to Melaleuca Customers; (iii) Offering any non-melaleuca products, services or business ventures in conjunction with the offering of Melaleuca products, services or income opportunity or at any Melaleuca meeting, seminar, launch, convention, or other Melaleuca function. (c) (i) Violation of any provision of this Policy 20 constitutes a Marketing Executive s voluntary resignation and cancellation of his/her Independent Marketing Executive Agreement, effective as of the date of the violation, and the forfeiture by the Marketing Executive of all commissions or bonuses payable for and after the calendar month in which the violation occurred. (ii) If Melaleuca pays any bonuses or commissions to the Marketing Executive after the date of the violation, all bonuses and commissions for and after the calendar month in which the violation occurred shall be refunded to Melaleuca. (iii) Melaleuca may seek and obtain from the violating Marketing Executive both injunctive relief and damages for violations of this Policy 20. Melaleuca, may, at its option, elect to enforce this Policy by lawsuit in a court of competent jurisdiction in Idaho rather than by arbitration. (iv) In addition to being entitled to a refund of bonuses and commissions and to damages as described above, in the event a person or entity violates this Policy 20, Melaleuca and any Marketing Executive that experiences an adverse financial impact as a result of such person s or entity s violation of this Policy 20 shall be entitled to an accounting and repayment of all profits, compensation, commissions, remunerations or other benefits which the person or entity directly or indirectly receives and/or may receive as a result of, growing out of, or in connection with any violation of this Policy. Such remedy shall be in addition to and not in limitation of any damages, or injunctive relief or other rights or remedies to which Melaleuca is or may be entitled at law or in equity. (d) Violations of this Policy 20 are especially detrimental to the growth and sales of other Marketing Executives Independent Melaleuca Businesses and to Melaleuca s business. Consequently, Marketing Executives who have knowledge that any Marketing Executive has violated this Policy must immediately report that information to Melaleuca s Policy Administration Department. The failure of a Marketing Executive to report such information to Melaleuca will also constitute a violation of this Policy. The names of those reporting violations of this Policy 20 will be held in confidence. 21. Proprietary Information and Trade Secrets By executing the Independent Marketing Executive Agreement, the Marketing Executive acknowledges that all information which is contained in the Marketing Executive s Monthly Business Report, including names, addresses and telephone numbers of Marketing Executives and Customers, and all identifying information relating to other Marketing Executives or customers that the Marketing Executive became aware of while conducting Melaleuca business in any way or while attending Melaleuca related events, is Melaleuca s proprietary trade secret information. The Marketing Executive agrees not to disclose such information to any third party (except to existing or prospective Melaleuca Marketing Executives or Customers for the purpose of promoting Melaleuca products and business opportunity) or to utilize such information for the purpose of promoting any other business opportunity at any time, whether during the term of his/her association with Melaleuca or thereafter. The Marketing Executive acknowledges that such proprietary information is of such character as to render it unique and that disclosure or use thereof in violation of this provision will result in irreparable damage to Melaleuca and to Independent Melaleuca Businesses. Melaleuca and its Marketing Executives will be entitled to injunctive relief to prevent violation of this policy. If litigation or arbitration is required to obtain injunctive relief or to recover damages, the prevailing party shall be entitled to an award of attorney s fees and expenses. 22. The Enroller (a) A Marketing Executive who is the Enroller of a new Customer or Marketing Executive may not list another Marketing Executive who did not participate in the contact or the presentation as the Enroller of such new Customer or Marketing Executive. Regardless of where a Customer or Marketing Executive is placed in a Marketing Organization, the actual Enroller of such Customer or Marketing Executive must be listed as the Enroller on the Customer Membership Agreement. (b) The Enroller and any other Marketing Executives involved in the recruiting and enrollment process may use only Melaleuca s products and its compensation plan and their personal commitment to help the new Marketing Executive build his or her business as an inducement to enroll. Marketing Executives may not enter into special deals with an Enrollee, including, but not limited to, promises of the payment of money or roll ups. (c) Before being listed as the Enroller, a Marketing Executive must have meaningful contact with the Enrollee in person, over the telephone, or via other live, face-to-face (or vocal). 23. Supervisory and Leadership Functions Marketing Executives compensation is based on sales of product to the End Consumer. To qualify for this compensation Marketing Executives have the ongoing responsibility to promote the Melaleuca business opportunity, to support Melaleuca s policies, programs and personnel, and to service, supervise, motivate and train the Marketing Executives in their Marketing Organization to sell and market Melaleuca products and promote the Melaleuca business opportunity. Any effort by a Marketing Executive to convince or entice any Customer or Marketing Executive to discontinue or diminish purchasing Melaleuca products, to move from one Melaleuca Marketing Organization to another, to discontinue or diminish efforts to promote the Melaleuca business opportunity, or to promote or pursue another direct selling opportunity, or to disparage Melaleuca, or its products, marketing plan, management team or other personnel is a violation of the Marketing Executive s leadership responsibility and a violation of this policy. 24. Excess Inventory Purchases Prohibited The Melaleuca marketing program is built upon sales to the End Consumer. Products representing at least 70% of a Marketing Executive s monthly Organization Product Points must be sold to End Consumers each month. Any device or scheme whereby a Marketing Executive directly or through a third party purchases excess product solely for purposes of qualifying for bonuses or commissions constitutes fraud on the part of the Marketing Executive. 25. Selling in Stores Melaleuca is in strong support of home-based businesses and personal product presentations. To maintain a standard of fairness, Marketing Executives may not display or sell Melaleuca products in drug stores, health food stores or grocery stores. Any display of Melaleuca products to the public must be tasteful and professional. A Marketing Executive may not display or sell Sei Bella products in any type of retail setting. 26. Media Inquiries It is Melaleuca s policy to have a single spokesperson handle all inquiries from the media and all media relations. Therefore, Marketing Executives may not, for any reason, discuss their Independent Melaleuca Business with the media, nor act as spokespersons for Melaleuca nor talk to the media regarding Melaleuca, its Compensation Plan, its products or services. It is a violation of this policy to provide any information to the media, regardless of whether the information is positive or negative, accurate or inaccurate. All inquiries from the media (whether radio, television or print) must be referred to Melaleuca. 27. Checks and Monthly Business Reports Commission and bonus checks are generally banked into the respective Marketing Executive s bank accounts on or about the 15th day of each month for commissions and bonuses earned during the previous month.when the 15th day of the month falls on a weekend or holiday, checks will generally be mailed on the next business day. Each Marketing Executive qualifying for a commission or bonus will receive a Monthly Business Report showing the status of each Customer and Marketing Executive in his/her Marketing Organization. The Monthly Business Report will show the calculation of the Marketing Executive s commission and bonus. Marketing Executives should use their Monthly Business Report as a tool to manage, supervise and train the members of their Marketing Organizations. The information contained in Business Reports is Melaleuca s proprietary trade secret information, and Marketing Executives are prohibited from disseminating the information contained therein. See Policy 21 for further detail regarding Marketing Executives obligations with respect to such proprietary trade secret information. A data processing fee is charged each Marketing Executive for generating and maintaining computerized Monthly Business Reports. Commissions and bonuses which failed to be credited directly into the Marketing Executive s designated local bank account through Interbank GIRO will be charged a processing fee of S$25 and will be credited to the Marketing Executive s account, which credit may be used towards purchases made by the Marketing Executive. If a Marketing Executive s account is inactive and it is necessary to notify the Marketing Executive of the credit on account, a service charge of S$15/RM35 will be deducted from the account for each notice sent. 28. Purchases for Other Persons A Marketing Executive may not order or pay for products for Customers without such Customer s express authorization and agreement to reimburse the Marketing Executive for such product. 29. Restrictions on International Marketing Marketing Executives enrolled in Singapore and Malaysia are authorized to sell Melaleuca products and to enroll Customers and Marketing Executives. In all other countries in which Melaleuca or its affiliates are authorized to conduct business Marketing Executives may only enroll Customers and Marketing Executives pursuant to Melaleuca s International Sponsorship Program. Marketing Executives and Customers may not ship or sell Melaleuca products across any international border for the purpose of resale. Marketing Executives and Customers may not sell, give, transfer, import, export or distribute Melaleuca products or sales aids nor provide products to any individual who the Marketing Executive or Customer knows or has reason to believe is exporting products to another country. 30. Trademark, Service Mark and Trade Name Restrictions Customers and Marketing Executives may not use, reproduce or disseminate the Melaleuca trade name or logo or any Melaleuca trademark or service mark except in the use and dissemination of literature published and made available by Melaleuca and except on stationery and business cards produced and authorized by Melaleuca. This includes, but is not limited to, the formatives Mela and Mel, the term Melaleuca, the leaf and drop logo, and all marks or slogans designating products or services offered by Melaleuca. 31. Rules regarding Advertising, Internet Usage and Sale of Materials (a) Marketing Executives may not: (i) create, publish, sell, use, display or distribute any literature, audio or video recording, Internet web site, telephone ad message, Internet bulletin board message, mass or bulk message (including auto-response messages), infomercial or other print, audio, visual, electronic media or social networking sites which represents Melaleuca, its products, services, Compensation Plan or business opportunity other than as specifically permitted pursuant to this Policy and Melaleuca s Guidelines on Internet Usage or that which is produced and provided by Melaleuca; (ii) copy or reproduce any materials produced by Melaleuca except as specifically permitted pursuant to this policy; (iii) use the Melaleuca name or logo or the name or logo of any of Melaleuca s products or services in any notice, display, advertisement or promotion, including, but not limited to, newspaper, magazine, radio, television or Internet or advertisements, or telephone, Internet 60 Building Your Melaleuca Business 61

32 or other directories (except a Marketing Executive may have a directory listing in the following format: Melaleuca Independent Marketing Executive [name of Marketing Executive] ); (iv) display, advertise or promote Melaleuca s products, services or business opportunity at county fairs, craft fairs, business fairs, trade shows, flea markets or any similar event, including the use of booths, without the express prior written approval of Melaleuca; (v) charge for Melaleuca-related meetings performed or arranged by a Marketing Executive except to the extent necessary to cover the actual out-of-pocket expenses incurred. (b) Marketing Executives may use websites and messages only in accordance with Melaleuca s Guidelines on Internet Usage as the same are published on Melaleuca s website, and which may be revised and modified from time to time at Melaleuca s sole discretion. Melaleuca will take reasonable measures to publish notice of any changes to the guidelines on its website, however it is the Marketing Executives responsibility to review these guidelines periodically to be informed of and comply with any changes. (c) Marketing Executives may only use websites produced by Melaleuca s approved website vendors. (d) Melaleuca will have the right, in its absolute discretion, to require that any Melaleuca related website be taken down and that any Melaleuca related message be discontinued. A Marketing Executive s failure to comply with any provision of this policy may result in forfeiture of commissions and bonuses, fines, and/or in termination of the Marketing Executive s Independent Marketing Executive Agreement. 32. Income Claims Marketing Executives are prohibited from making false, misleading or inaccurate claims about their or other persons compensation received under the Melaleuca Compensation Plan. If, when presenting the Melaleuca business opportunity, a Marketing Executive makes any claim regarding his/her compensation from Melaleuca, or the potential compensation payable under Melaleuca s Compensation Plan, the Marketing Executive must also show the person(s) receiving the presentation Melaleuca s current Marketing Executives Annual Income Statistics sheet. 33. Product Claims and Warranties Marketing Executives may not make any product claims, weight loss or health benefit claims, or product warranties other than those published in Official Melaleuca Material. Marketing Executives shall not publish or distribute information relating to uses of Melaleuca products other than those which are set forth in Official Melaleuca Material. Marketing Executives may not utilize Official Melaleuca Material which is approved for use in one country to make product claims or promote Melaleuca products in another country. 34. Ethical Sales Practices Marketing Executives shall: Conduct themselves in a professional, courteous and considerate manner; Represent Melaleuca products in a sincere and honest manner and will honor Melaleuca s Customer Satisfaction Guarantee; Represent the Melaleuca Compensation Plan only as prescribed by Official Melaleuca Material; Become familiar with and utilize sales techniques, Melaleuca s Compensation Plan and Statement of Policies, and other materials as prescribed by Melaleuca; Present the Melaleuca business opportunity in a manner which is consistent with Official Melaleuca Material; and Provide training, motivation and support to Marketing Executives in their organization Marketing Executives shall not: Engage in any deceptive, unlawful, or unethical business or recruiting practice; Engage in any high pressure selling or recruiting practices; Enroll minors or persons who are not capable of making an informed decision with respect to entering into a Customer Membership Agreement or Independent Marketing Executive Agreement; Order Melaleuca products for other Customers or Marketing Executives without the express permission of such persons; List a Marketing Executive as an Enroller who did not participate in the contact or the presentation of a new Customer or Marketing Executive and who did not meaningfully contact the Enrollee in person, over the telephone, or via other live, face-toface (or vocal) means of communication; or Seek in any way to violate or circumvent Melaleuca s policies 35. Policy Disclosure Requirement Prior to enrolling a prospective Marketing Executive, Marketing Executives shall provide to and review with the prospective Marketing Executive a current copy of Melaleuca s Statement of Policies and Definitions of Terms. 36. Voluntary Resignation Due to Inactivity It is the Marketing Executive s responsibility to lead his/her Marketing Organization with the proper example in production of Personal Product Points. Without this proper example and leadership, the Marketing Executive will lose his/her right to receive commissions and bonuses from his/ her Marketing Organization. Therefore, Marketing Executives who produce less than the minimum Personal Product Points required to maintain their current Commission Rate during a month, as set forth in the Compensation Plan, will not receive the commission or bonus attributable to such status for the sales generated through their Marketing Organization for that month. Failure to meet Personal Product Point requirements for two consecutive months constitutes the Marketing Executive s voluntary resignation. A Marketing Executive who has voluntarily resigned will lose all his/her Personal Enrollees and his/her Marketing Organization. The resignation shall become effective on the day following the last day of the second month of inactivity. 37. Reactivation and Reenrollment Requirements (a) When a Marketing Executive who has been deemed to have voluntarily resigned due to inactivity under Policy 36 becomes reactivated, he/she will reenter his/her previous Marketing Organization in the first available position below his/her original Marketing Executive other than the position left vacant by such Marketing Executive. (b) Former (i) Customers and Marketing Executives with the Status of Marketing Executive III or below (1) may re-enroll as new Customers and Marketing Executives with their original Enroller and their original Marketing Executive at any time, but each such reenrollment will constitute a new enrollment for the Enroller only if the newly reenrolled Customer has been cancelled or inactive for 3 years or longer prior to reenrolling. (2) who have not been enrolled with Melaleuca for at least the previous six consecutive months may reenroll as new Customers and Marketing Executives with the Enroller and Marketing Executive of their choice. (ii) Marketing Executives with the Status of Director and above (1) may reenroll as new Customers and Marketing Executives with their original Enroller and their original Marketing Executive at any time, but each such reenrollment will constitute a new enrollment for the Enroller only if the newly reenrolled Customer has been cancelled or inactive for 3 years or longer prior to reenrolling. (2) Marketing Executives with a Status of Director or above must be inactive for one year before they can reenroll with an enroller and Marketing Executive of their choice. (3) may reenroll with an enroller of his or her choice after 6 months of inactivity if he or she has not been an Commission Rate Director or above during the 12 months prior to the first month of inactivity. (iii) No leadership points will be awarded for any presentation or enrollment of a reenrolled Customer that has been canceled or inactive for fewer than 3 years. (c) If a former Customer or Marketing Executive desires to reenroll in a new Marketing Organization in which any Marketing Executive in the new Support Team was also in his/her previous Support Team, such former Customer or Marketing Executive may reenroll no sooner than twelve months following the date that such Support Team Marketing Executive became inactive in his/ her previous Marketing Organization. Any individual involved in the violation of this policy will be subject to corrective measures pursuant to Policy 42, including fines and/ or cancellation of his or her Independent Marketing Executive Agreement. (d) Former Customers or Marketing Executives who reenroll pursuant to this Policy 37 will not be eligible to roll up pursuant to Policy Titles Not Forfeited A Marketing Executive can lose his/her Marketing Executive II, Marketing Executive III, Director, Senior Director, Executive Director or Corporate Director status and therefore the right to participate in the corresponding commission and bonus if he/she no longer qualifies for the commission or bonus pertaining to such status. However, as long as a Marketing Executive remains active, he/she will not forfeit the title of the highest status he/she has achieved. 39. Roll-Up Policy (a) When a vacancy occurs in a Marketing Organization due to the inactivity, voluntary resignation or involuntary termination of a Marketing Executive (a Canceled Marketing Executive ), each Marketing Executive in the first generation below the Canceled Marketing Executive (a First Generation Marketing Executive ) will have the opportunity to qualify to roll up into the position of the Canceled Marketing Executive. In order to qualify for such roll-up, the following requirements must be met: (i) If the Canceled Marketing Executive s Organization Product Points were less than 2,500 in the Canceled Marketing Executive s first month of inactivity, the First Generation Marketing Executive with the highest Commission Rate in the Canceled Marketing Executive s second month of inactivity will roll up to the position of the Canceled Marketing Executive in the month following the Canceled Marketing Executive s second month of inactivity. In the event of a tie, the following criteria will be applied, in the order listed, to the First Generation Marketing Executives involved in the tie until the tie is broken: (1) who has the largest number of personally enrolled Directors; (2) who has the largest number of personally enrolled Preferred Customers; (3) whose Marketing Organization has the largest number of Preferred Customers; (4) whose Marketing Organization has the highest average Product Point order per Customer; and (5) who has the highest Personal Product Points. (6) who enrolled first. (ii) If the Canceled Marketing Executive s Organization Product Points were equal to or greater than 2500 in the Canceled Marketing Executive s first month of inactivity, the First Generation Marketing Executive who has or first attains the status which corresponds to the Canceled Marketing Executive s Organization Product Points in the first month of inactivity will roll up to the position of the Canceled Marketing Executive the month following the month the First Generation Marketing Executive has or attains such status, but in no event sooner than the month following the Canceled Marketing Executive s second month of inactivity. If two or more First Generation Marketing Executives qualify for the roll-up in the same month, the tie will be broken by application of the criteria set forth in subparagraph (i) above. (b) The Enroller of a Canceled Marketing Executive will inherit the Canceled Marketing Executive s Personal Enrollees as follows: (i) For each Personal Enrollee that is a Customer (with no Marketing Organization) or that had the Commission Rate of a Marketing Executive and had less than 2,500 Organization Product Points in the Canceled Marketing Executive s first month of inactivity the Enroller will automatically inherit the Personal Enrollee in the Canceled Marketing Executive s third month of inactivity. (ii) For each Personal Enrollee who had the Commission Rate of a Marketing Executive II or above and had less than 2,500 Organization Product Points in the Canceled Marketing Executive s first month of inactivity, the Enroller will inherit such Personal Enrollee in the month following the month the Personal Enrollee has advanced one status above the Commission Rate the Personal Enrollee had in the Canceled Marketing Executive s first month of inactivity. (iii) For each Personal Enrollee who had Organization Product Points of 2,500 or more in the Canceled Marketing Executive s first month of inactivity, the Enroller will inherit such Personal Enrollee in the month following the month the Personal Enrollee has advanced one status level above the Volume Status that the Personal Enrollee had in the Canceled Marketing Executive s first month of inactivity. (iv) If the personal enrollee had Organizational Product Points of 50,000 or more or a status of Executive Director or higher in the cancelled Marketing Executive's first month of inactivity, the enroller cannot inherit such personal enrollee. However, in the case of termination, Marketing Executives who had organization product points of 50,000 or more or who had a status of Executive Director or above at the time of their enroller s termination may be inherited when each of the following occur: a) The potential enroller helps the potential Personal Enrollee advance to one status above the volume status that the potential Personal Enrollee had in the terminated Marketing Executive's first month of inactivity; and b) The potential enroller helps a Personal Enrollee advance to Executive Director for the first time after the Cancelled Marketing Executive's first month of inactivity. The advancing Personal Enrollee must be an actual Personal Enrollee of the potential enroller, not an inherited Personal Enrollee. c) All other inheritance rules apply. d) If a potential enroller inherits a potential enrollee, the PEG volume from the inherited potential enrollee's organization will replace the PEG volume from the terminated Marketing Executive's organization. Therefore, the potential enroller will no longer receive PEG volume from the terminated Marketing Executive's organization. (v) No Enroller can inherit a Personal Enrollee whose Status is higher than his/her own, unless neither has a Status higher than Director II. (vi) When a Marketing Executive has their Independent Marketing Executive Agreement cancelled due to any reason including a policy violation; in the month that the cancellation/termination occurs; target statuses for the personal enrollees will be set and inheritances will occur based in accordance with all other existing policies. (c) If the Canceled Marketing Executive had the Commission Rate of Senior Director or above in his/her last month of activity and (i) was terminated by Melaleuca for a policy violation or (ii) voluntarily resigned or went inactive while under investigation for a policy violation, the Enroller of such Canceled Marketing Executive will continue to receive credit for having a Personal Enrollee with the same status (Senior, Executive or Corporate Director) to count towards the Enroller s status for twelve consecutive months from the month following the termination or resignation of the Canceled Marketing Executive. For each month after the initial twelve months, the Enroller of such Canceled Marketing Executive will receive credit for having a Personal Enrollee with the status (Senior, Executive or Corporate Director) attributable pursuant to the Compensation Plan to the Organization Volume of the Marketing Organization of the Canceled Marketing Executive. However, such credit cannot apply at the same time with respect to two Personal Enrollees. Therefore, the credit will expire in the first month in which one of the following have occurred: (x) a Personal Enrollee of the Canceled Marketing Executive rolls up into the position previously held by the Canceled Marketing Executive, and the Enroller of the Canceled Marketing Executive inherits or has inherited such Personal Enrollee of the Canceled Marketing Executive, and (y) the enroller of the Cancelled Marketing Executive has inherited a potential Personal Enrollee who has or achieves Executive Director status or the status of the Cancelled Marketing Executive at the time of cancellation. (d) To qualify for any roll-up or inheritance, the Marketing Executive who will be receiving the roll-up or who will be inheriting Personal Enrollees must have been in compliance with Melaleuca s policies for the preceding 12 months. 40. Obligations of Independent Contractors As an independent contractor, it is a Marketing Executive s responsibility to: (a) Abide by any and all federal, state, provincial, county and local laws, rules and regulations pertaining to the acquisition, receipt, holding, selling, distributing or advertising of Melaleuca products and services and the promotion of the Melaleuca business opportunity; (b) At the Marketing Executive s own expense, make, execute or file all such reports and obtain such licenses as are required by law or public authority with respect to his/her Independent Melaleuca Business and/or the receipt, holding, selling, distributing or promoting of Melaleuca products; (c) Be solely responsible for declaration and payment of all local, state, provincial, federal 62 Building Your Melaleuca Business 63

33 and general sales taxes and fees as may accrue because of the Marketing Executive s activities in conjunction with his/her Independent Melaleuca Business; (d) Supply all of his/her own equipment and tools for operating his/her business, such as telephone, transportation, professional services, office equipment, and office supplies; and (e) Provide his/her own place of business and determine his/her own work hours. 41. Marketing Executives Are Not Corporate Representatives Marketing Executives are not corporate representatives of Melaleuca and are not authorized to incur any debt, expense or obligation on behalf of or for Melaleuca, nor bind Melaleuca to any agreement or contract. 42. Corrective Measures All of the policies in this Statement of Policies, the provisions of the Independent Marketing Executive Agreement, the Corporate Entity Application and Agreement, the Tax Exempt Entity Application and Agreement and any other agreements entered into by and between Melaleuca and Marketing Executives are material terms to the agreement between Melaleuca and Marketing Executives. A Marketing Executive s violation of any of the terms and conditions of any of these agreements or the Statement of Policies or any illegal, fraudulent, deceptive or unethical conduct by a Marketing Executive may result, at Melaleuca s discretion, in one or more of the following corrective measures: (a) issuance of a written warning or admonition; (b) imposition of a fine, which may be imposed immediately or withheld from future commission and/or bonus checks; (c) reassignment of all or part of his/her Marketing Organization; (d) suspension of his/her Independent Marketing Executive Agreement for one or more months; (e) cancellation of his or her Independent Marketing Executive Agreement; or (f) any other measure expressly stated within any of the policies set forth in the Statement of Policies or any provision of the Marketing Executive Agreement, the Corporate Entity Definitions of Terms The following terms will have the meanings set forth herein when used in Melaleuca s Statement of Policies, Compensation Plan and/or Independent Marketing Executive Agreement and other official Melaleuca material. Application and Agreement, or the Tax Exempt Entity Application and Agreement. Melaleuca has the right to withhold from a Marketing Executive all bonuses and commissions during the period that Melaleuca is investigating the alleged violative conduct of the Marketing Executive. If a Marketing Executive s Independent Marketing Executive Agreement is canceled due to a violation preceding the investigation, the Marketing Executive will not be entitled to any commissions or bonuses withheld by Melaleuca during the investigation period. 43. Forfeiture of Rights to Bonuses and Commissions So long as a Marketing Executive is complying with all policies and terms of the Independent Marketing Executive Agreement, Melaleuca is obligated to pay commissions and bonuses to such Marketing Executive in accordance with the Compensation Plan. A Marketing Executive s commissions and bonuses constitute the entire consideration for all of the Marketing Executive s efforts in generating sales, and the Marketing Executive s right to receive commissions and bonuses from Melaleuca constitutes the entire value attributable to the Marketing Executive s Marketing Organization. Following a Marketing Executive s resignation, cancellation for inactivity, or voluntary or involuntary cancellation of his/her Independent Marketing Executive Agreement, such former Marketing Executive shall have no right, title, claim or interest to the Marketing Organization. The former Marketing Executive shall have no claim for compensation for the Marketing Organization or for bonuses or commissions stemming from sales generated within or by the Marketing Organization or for car bonus amounts held in escrow by Melaleuca. Following voluntary or involuntary cancellation of his/her Independent Marketing Executive Agreement, the former Marketing Executive shall not hold himself/herself out as a Melaleuca Marketing Executive and shall not have the right to sell Melaleuca products or services. Active Customer: Any Customer who purchases at least 29 Product Points each month. Active Marketing Executive: A Marketing Executive who personally produces the number of Product Points each month that are required to qualify at his/her Commission Rate pursuant to the Compensation Plan. Annual Income Statistics: A summary of income statistics published by Melaleuca setting forth information regarding average, high and low income received by Marketing Executives on an annual basis. Average Retention Index: An average of the percentages of customers remaining in an organization from the past 5 enrollment months. Your ARI is used to determine your Retention Factor, multiplier in the Leadership Pool Formula, and (if you are a Senior Director or above) determines your participation in the Leadership Growth Bonus. 44. Amendments to Compensation Plan, Statement of Policies, and/or Independent Marketing Executive Agreement Upon 30 days notice to Marketing Executives, Melaleuca may, at its sole discretion, amend the Compensation Plan, Statement of Policies, Definitions of Terms and/or the terms of the Independent Marketing Executive Agreement and any other agreements entered into by and between Melaleuca and the Marketing Executives. By signing the Independent Marketing Executive Agreement, Marketing Executives agree to abide by any such amendments. The continuation of an Independent Melaleuca Business or a Marketing Executive s acceptance of commissions and/ or bonuses from Melaleuca after the 30-day notification period constitutes his/her acceptance of any such amendments. After 30 days notice, Marketing Executives will be bound by the most current versions of the Compensation Plan, the Statement of Policies, the Definitions of Terms, the Independent Marketing Executive Agreement and any other agreements entered into by and between Melaleuca and the Marketing Executives. Backup Order: A preselected package of Melaleuca products which is automatically shipped to Preferred Customers if they fail to order the minimum monthly Product Points agreed upon in their Customer Membership Agreement. Those who select the Preferred Customer option in the Customer Membership Agreement preauthorize Melaleuca to send a Backup Order and it will be charged to their credit card. Business Kit (Membership Kit): The Melaleuca product and business opportunity information portfolio purchased by a new Marketing Executive pursuant to the terms of the Independent Marketing Executive Agreement which includes product and marketing information and other Official Melaleuca Material. Commission Rate: The development position or leadership status of a Marketing Executive as of the most recent month end or business reporting period. Compensation Plan: The plan offered by Melaleuca that sets forth the compensation provided to Marketing Executives for the continuing building, promoting, training, motivation, servicing and development of their Independent Melaleuca Businesses. Corporate Entity Application and Agreement: The addendum to the Independent Marketing Executive Agreement that must be completed by corporate entities that are applying to become Marketing Executives. Customer: A person who has an Enroller, has completed, executed and delivered to Melaleuca a Customer Membership Agreement and has paid to Melaleuca the appropriate membership fee. Customers are either Direct Customers or Preferred Customers. Customer Membership Agreement: The agreement which must be completed, signed, received and accepted by Melaleuca before a person may become a Customer. Customer Number: A unique number assigned by Melaleuca to each Customer to facilitate internal record keeping by Melaleuca with respect to the Customer. Direct Customer: A Customer who is authorized to purchase product from Melaleuca at Direct Customer prices pursuant to a Customer Membership Agreement. End Consumer: A person who purchases Melaleuca products for the purpose of consuming them rather than for resale to someone else. Enroll: To enlist, sponsor or sign up an individual or entity into a program or organization. Enrollee: A Customer or Marketing Executive. Enroller: The Marketing Executive who is listed on the Customer Membership Agreement as the enroller. The Enroller must be the person who introduced the new Customer to Melaleuca and helped him/ her become a Customer or who played an active role in the presentation of Melaleuca products or business opportunity to the new Customer. Before being listed as the Enroller, a Marketing Executive must have meaningful contact with the Enrollee in person, over the telephone, or via other live, faceto-face (or vocal) means of communication. Immediate Household: Married couples and persons residing in the same home, and with respect to Marketing Executives and Customers which are entities (e.g., corporations, tax exempt entities, trusts, etc.) rather than individuals, Immediate Household means the shareholders, owners, directors, officers, trustees, responsible parties, etc. of such entities and persons married to or residing in the same home with the persons who are the shareholders, owners, directors, officers, trustees, responsible parties, etc. of such entities. Interbank GIRO: A payment method by which a customer authorizes Melaleuca to deduct payment for orders directly from his/her account. Inactive Customer: A Customer becomes inactive if he/she fails to purchase a minimum of 29 Product Points for two consecutive months. Inactive Marketing Executive: A Marketing Executive becomes inactive if he/she fails to personally produce the number of Product Points that are required to qualify at his/her Commission Rate level pursuant to the Compensation Plan for two consecutive months. Independent Marketing Executive Agreement: The agreement which must be completed, signed, received and accepted by Melaleuca as one of the prerequisites to becoming a Marketing Executive. Independent Melaleuca Business: The business organization consisting of a Marketing Executive and those persons and entities that purchase Melaleuca products or generate sales of Melaleuca products from which the Marketing Executive is entitled to receive commissions. Marketing Executive: A person who has an Enroller, has completed, executed and delivered to Melaleuca an Independent Marketing Executive Agreement, has purchased a Business Kit, has at least one Customer and has received his/her first commission check. Marketing Organization: The Customers and Marketing Executives who comprise the group of individuals or entities from which the Marketing Executive is entitled to receive commissions based upon the collective sales volume of the group and the status of certain Marketing Executives within the group pursuant to the Plan of Compensation. Melaleuca: Melaleuca Southeast Asia (Singapore) Pte Ltd, Melaleuca Southeast Asia (Malaysia) Sdn Bhd Melaleuca International Sponsorship Program: The program offered by Melaleuca with regard to sponsorship by Marketing Executives in one country of Customers and Marketing Executives in foreign countries where Melaleuca is authorized to do business. Monthly Business Reports: Reports produced by Melaleuca on a monthly basis and provided to Marketing Executives which contain information relating to the activity of the Marketing Executive s Marketing Organization. The Monthly Business Reports contain trade secret information that is proprietary to Melaleuca. Official Melaleuca Material: Material in any form which is authorized, published, and disseminated by Melaleuca. This includes, but is not limited to, printed material, audio and visual materials, satellite broadcasts, fax and electronic communications and Internet communications. Organization Product Points: The total Product Points attributable to Melaleuca products which a Marketing Executive s Marketing Organization purchased or produced in a calendar month, including the Marketing Executive s Personal Product Points. Organization PCs: The total net Preferred Customers in a Marketing Executive s organization in a given month. Organization Volume: The total Product Points from products and services purchased in a Marketing Executive s organization in a calendar month. PEG Volume: Personal Enrollee Group (PEG) Volume is the total organization Product Point volume of a Marketing Executive s Personal Enrollees in any given month. Personal Product Points: The total monthly Product Points personally produced by a Marketing Executive. Personal Customer: A person who purchases product directly from Melaleuca using a Marketing Executive s account number. Personal Enrollee: An Enroller s Enrollee to whom the Enroller has personally introduced Melaleuca and/or has played an active role in the presentation of Melaleuca products or business opportunity. Personal Director: A Personal Enrollee with the Commission Rate of Director or above. Personal Sales: Sales that a Marketing Executive makes to a Personal Customer. Preferred Customer: A Customer who is authorized to purchase products from Melaleuca at Preferred Customer prices and who has committed to purchase each month products totaling at least 35 Product Points. Product Points: A value assigned to each Melaleuca product or service upon which commissions and bonuses are calculated. Product Point Production: To produce Product Points, a Marketing Executive must create sales to end consumers other than customers in the Marketing Executive s Marketing Organization. These sales must be products the consumer actually desires or needs as opposed to enticing consumers to purchase products in order for the Marketing Executive to qualify for a commission. Recruit: 1) To attempt to enroll, enlist, or solicit an individual or entity to join a business, program or organization; or 2) to attempt to promote, influence or encourage an individual or entity to join a business, program or organization; or 3) to present, or participate or assist in the presentation of, a business, program, organization or its products. To constitute recruiting, such efforts or attempts may be performed either directly through personal contact or indirectly through a third party. Statement of Policies: The policies published by Melaleuca, as amended from time to time, which set forth, among other things, the requirements for operating an Independent Melaleuca Business. Status: The highest leadership position ever achieved with Melaleuca. Support Team: The Marketing Executives above an individual in a Marketing Organization who have the potential to receive commissions based upon the purchases of such individual. Tax Exempt Entity Application and Agreement: The addendum to the Independent Marketing Executive Agreement which must be completed by tax exempt entities that are applying to become Marketing Executives. Volume Status: All advancements in status of Director II or above require a minimum volume of Organization Product Points. The status corresponding to each required volume in the compensation plan is the Volume Status. 64 Building Your Melaleuca Business 65

34 Melaleuca Guidelines on Internet Usage 1. Approved Website Providers All websites owned or utilized by Marketing Executives for any purpose related to their Melaleuca businesses must be hosted by one of Melaleuca s approved providers. For more information on approved providers or applying for an exemption go to www. melaleuca.com, log on, and go to the Business Center section of the website. 2. Lead-Generating Web Ads, Websites, and s Marketing Executives may maintain web ads and websites for the purpose of generating leads of potential customers, and Marketing Executives may send one or more s in response to persons who request information through their lead-generating websites, provided that such websites and responsive s are in compliance with Melaleuca s guidelines. Spam or unsolicited s are not permitted. The general standard for such websites and messages is that they should be conservative and appropriate to the promotion of quality products and a professionally operated business. The following provisions are designed to provide guidance and to ensure that standard is maintained. a) Lead-generating ads, websites, and s must: i) contain the Marketing Executive s first and last legal name and direct address to contact the Marketing Executive. ii) be professional-looking, product-oriented and use professional business language, avoiding hype. b) Lead-generating ads, websites, and s may: i) solicit the reader s interest in high-quality, safe and effective nutritional, personal care, cosmetic and household cleaning products from a catalog. ii) solicit the reader s interest in a home-based business opportunity. iii) contain a member s login section to access the Site Owner s Training and Information website/pages. (1) This link/login section MAY NOT refer to any Melaleuca term, phrase or title, and may not be called Melaleuca Login. (a) This link may be called Members Login, etc., and must follow all other guidelines for lead-generating websites. iv) contain a link to the current official version of the Delivering Wellness presentation in the format provided by one of Melaleuca s approved website providers to be used only for training purposes or for facilitating live Delivering Wellness presentations. (1) This link must be username/password enabled (2) This link must not refer to any melaleuca term, phrase or title, and may not be called delivering wellness presentation. (3) This link may be called Presentation, Business Presentation etc. and must follow all other guidelines for lead-generating websites. c) Lead-generating ads, websites and s may not: i) identify Melaleuca s product or income opportunity in any manner, or be identifiable by the general public as being Melaleuca related. ii) contain the word Melaleuca or the Leaf and Drop logo. iii) contain any of Melaleuca s trademarked words or phrases or product names. iv) contain any of Melaleuca s copyrighted materials or summaries of copyrighted materials. v) describe Melaleuca s products, services, compensation plan or business opportunity. vi) contain any statements or claims about income. vii) contain any statements about Melaleuca s retention or reorder rate, or any other factors unique to Melaleuca. viii) contain any description about Melaleuca s awards, track record, management, affiliations or history. ix) contain any promises or representations about placement within a marketing organization, that a down line or organization will be built for the new enrollee, or that this is a business in which little effort is required. x) contain any enrollment or registration forms (whether online or in printable format). xi) request payment of money in any form. xii) request credit card or checking account information. xiii) be identifiable through any search engine by using the search word melaleuca or any derivation thereof (including mela ) or any other of Melaleuca s trademarked words or phrases or the names of any Melaleuca products or services. xiv) promote or offer any other products, services, or business opportunities. xv) offer for a fee any web page hosting services or other web- related services, Internet usage training or services, or any other training or materials of any kind. xvi) contain any banners, pop ups or jump sites. xvii) refer the reader to any prerecorded phone message or other type of communication that contravenes any of these rules. xviii) contravene any state or federal law, applicable Internet service provider rules or regulations, or any other Melaleuca policy. d) Any enrollment involving a potential customer that is identified from a lead-generating ad or website or must include a one-on-one, face-to-face or vocal (i.e., telephonic or Internet-based call) presentation between the Enroller and the Enrollee prior to the enrollment. e) s may be used to determine the quality of the lead, but such s may only be sent in response to direct requests for more information and must comply with all of the foregoing guidelines. f) All messages to potential customers must comply with all state and federal law and with applicable Internet service provider rules and must contain an opt out button prominently displayed on the first screen page of the message. 3. Training and Information Websites A Marketing Executive may maintain a website for the purpose of providing business-related information and training on business building activities to his/her Melaleuca Marketing Organization. The general standard for such websites is that they should be appropriate to a professionally operated business. The following provisions are designed to provide guidance and ensure that standard is maintained. (a) Training and information websites must be 100% password protected (meaning that no portion of the site can be accessed by any means other than a password) and available for viewing only by Melaleuca Marketing Executives and Customers. i) Password protocol may be determined between Approved Provider and Website owner, as to whether there is a blanket, generic password for all invited guests; or unique, individually managed usernames and passwords. ii) If a link to the Delivering Wellness presentation is included in the home page of a training and information website, the Delivering Wellness presentation must have a separate username and password than the rest of the site. (See 2 c viii) (b) Training and information websites may: i) contain Melaleuca trademarked words or phrases or product names. ii) contain truthful and accurate Melaleuca product and business stories from the owner of the site and other Marketing Executives iii) provide information about Melaleuca corporate or marketing organization meeting dates and locations. iv) contain business- and product-oriented bulletin boards, provided the content is closely monitored by the site owner to ensure that it complies with Melaleuca s policies. v) provide information and training about business-building strategies (including the Seven Activities, how to optimize the use of the Internet, etc.). vi) recognize the achievements and advancements of Marketing Executives within the website owner s organization. vii) contain one or more jump sites to Melaleuca s official website. viii) contain a current official version of the Delivering Wellness presentation in the format provided by one of Melaleuca s approved website providers to be used only for training purposes or for facilitating live Delivering Wellness presentations. (c) Training and information websites may not: i) be used for the purpose of soliciting new customers. ii) provide information about Melaleuca s products or compensation plan (other than personal product and business messages). iii) contain any statements or claims about income. iv) contain any promises or representations about placement within a marketing organization, that a down line or organization will be built for a Marketing Executive, or that this is a business in which little effort is required. v) contain any enrollment or registrations forms, except that the website may contain a jump site to Melaleuca s Customer Membership Agreement and Independent Marketing Executive Agreement forms contained on Melaleuca s official website. vi) promote or offer any other products, services or business opportunities. vii) offer any materials or services for a fee, including but not limited to any web page hosting services or other web-related services, Internet usage training or services, lead generation services or training services or materials. viii) contain any banners, pop-ups or jump sites to any third party websites. ix) offer for sale any Melaleuca logo gear; however, they may offer for sale the logo gear of a particular marketing organization provided it is sold at actual cost. 4. Sale of Products, Materials or Income Opportunity on the Internet Marketing Executives and Customers may not offer for sale Melaleuca products, materials or the income opportunity via the Internet (including ebay). Melaleuca shall have the right to enjoin any such offers by legal action and to recover its legal fees and costs in connection with any such legal action. 5. Prerecorded Audio or Video Messages Marketing Executives may not create, publish, produce, use or maintain, either directly or indirectly, any audio or video recording which has the purpose or effect of creating interest in, introducing or presenting Melaleuca, its products or income opportunity, regardless of whether Melaleuca is actually mentioned in the recording. However, prerecorded training messages that are available only to Marketing Executives, are protected by pass code and comply in all respects with Melaleuca s policies and guidelines are permissible. 6. Violations A Marketing Executive s violation of Melaleuca s Internet usage guidelines and policies may result in the forfeiture of commissions and bonuses, fines, or termination of the Marketing Executive s Independent Marketing Executive Agreement. 66 Building Your Melaleuca Business 67